Liability Driven Investment - LDI

(OPEN LVDS Digital Interface) A digital interface for a flat panel display based on LVDS and endorsed by SGI, Number Nine, National Semiconductor and others. The first flat panel monitor to use this interface was SGI's award-winning 1600SW with a 1600x1024x16M resolution. OpenLDI was superseded by DVI. See DVI, flat panel display and LVDS.

Download Computer Desktop Encyclopedia to your iPhone/iTouch

A form of investing in which the main goal is to gain sufficient assets to meet all liabilities, both current and future. This form of investing is most prominent with defined-benefit pension plans, whose liabilities can often reach into the billions of dollars for the largest of plans.

Investopedia Says:
LDIs are most prominent in the funding schemes of defined-benefit pension plans, which are designed to provide a predetermined pension upon retirement. The liabilities in these funds arise as a result of the "guaranteed" pensions they are supposed to provide to members upon retirement.

In the early 2000s, the entire structure of the defined-benefit scheme was criticized as being faulty. The liabilities that sponsoring companies and plan members must pay for has increased substantially, which has caused some pension plans to reduce benefits to retired members, or even to shut down entirely.

Related Links:
Experts are making bleak predictions for your post-work years. Be prepared and plan for your future. The Demise Of The Defined-Benefit Plan
You've probably contributed to this fund, but will you reap the benefits? Find out here. Introduction To Social Security
Learn about eligibility requirements, contributions to and distributions from the plans that are established by an employer to provide retirement benefits for employees and their beneficiaries. The 401(k) and Qualified Plans Tutorial
Determine the risk to a company's EPS and financial condition resulting from an underfunded defined-benefit pension plan. Analyzing Pension Risk