[Verse 1] Portfolio manager weighs the pension load Liabilities stretching down the road Cash flow matching, payment by payment align Every dollar timed to that deadline Duration matching, sensitivity's key Immunization locks in certainty [Chorus] LDI keeps the future bright Match those flows and get duration right Full replication or sample the field Optimization makes the index yield Active plays with sectors in rotation Fixed income builds the nation [Verse 2] Index tracking takes three different roads Full replication buys what the benchmark holds Stratified sampling picks by strata clean Optimization finds the leanest machine Every bond or just the best selection Mathematical bond collection [Chorus] LDI keeps the future bright Match those flows and get duration right Full replication or sample the field Optimization makes the index yield Active plays with sectors in rotation Fixed income builds the nation [Bridge] Bullet portfolio, one maturity date Barbell spreads short and long to concentrate Ladder climbs each year with bonds that mature Sector rotation when the cycle's sure Credit positioning rides the quality wave Duration timing, that's the yield you save [Verse 3] International bonds cross currency lines Hedging foreign exchange risk defines Cross-currency basis, the spread that appears When swapping currencies through the years Currency forward contracts lock the rate Global diversification can't wait [Chorus] LDI keeps the future bright Match those flows and get duration right Full replication or sample the field Optimization makes the index yield Active plays with sectors in rotation Fixed income builds the nation [Outro] Contingent immunization gives you choice Active management with a safety voice When performance falls to the floor Immunization becomes the core
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