Build a simple liquidity waterfall for pension benefit payments under stress.
The fund pays $28M monthly benefits, receives $9M monthly contributions, has $110M operating cash, $160M Treasuries maturing over 12 months, and $70M expected capital calls in the stress case. Build the first-year liquidity waterfall. Liquidity waterfall: order cash sources by reliability, cost, and governance burden before stress forces a sale. The common trap is to count total assets as liquidity. A $3B fund can still face forced selling if the available cash path is not planned. Net benefits $28M benefits minus $9M contributions = $19M net monthly cash need. Net benefit cash flow is the recurring base load the waterfall…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in