"If you've been waiting for rates to rise and improve your funded status, it may be time to stop waiting and start planning another strategy to increase funding. Also, if you're using shorter-term fixed income, you may be exposed to more of the potential rate rise while simultaneously missing the long bond yield needed to keep pace with your liability's ability to earn a long-bond rate.... [If] you're measuring your liability with AA bonds (as you must do to determine your liability for accounting purposes), then your pension liability will behave most like the universe of AA corporate bonds that has the same duration as your liability. This means if you're investing in a lot of BBB bonds as part of your liability driven investing (LDI) strategy, there's a disconnect between your assets and liability."

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