Dr. Norman Ehrentreich
specializes on providing consulting services on liability driven investment (LDI) strategies to DB plan sponsors, investment managers, and other consulting firms. Norman Ehrentreich has earned his Ph.D. with summa cum laude from Martin Luther University Halle-Wittenberg (Germany). His thesis has become a widely used textbook on agent-based modeling of financial markets. He then joined the fixed income department of RiverSource Investments where he developed the firm’s LDI capabilities and contributed to the asset management business through the development of several macroeconomic forecasting models, yield curve generators, and valuation models. He founded his consulting company in 2009 in an attempt to foster the adoption of LDI strategies among corporate and public pension plans. His research on LDI has led him to propose the existence of an Asset Return – Funding Cost Paradox for DB pension plans. Contrary to conventional wisdom, this paradox posits that pension plans in the US with LDI strategies are likely to experience lower funding costs than those that have higher returning, but more volatile equity strategies. He is a member of the American Society of Pension Professionals and Actuaries, the American Economic Association, and the American Finance Association. He holds series 7 and 63 as well as the Retirement Plan Fundamentals Certificate of the American Society of Pension Professionals and Actuaries. He is a regular blogger at the FiduciaryX website and the manager of the LinkedIn group "Liability Driven Investing". He has presented his research at various conferences. His scholarly work includes papers on monetary theory and policy, on corporate governance, agent-based modeling, and liability driven investments.
Selected Publications: About LDI and DB Pension Funding:
- "Retirement-Savings Rewind", The Wall Street Journal, January 30, 2010 (B2)
- "Looking for a fix for retirement security", MarketWatch, January 27, 2010
- "Experts react to Obama’s plan to help Americans save more", Retirement Weekly, vol. 8, no. 5 (January 2010), p. 6-8.
- "Funding relief is only a short term solution", Global Pensions, March 2010, p. 11.
- "US officials are failing on return assumptions", Global Pensions, April 2010, p. 12
- "The Funding Cost Paradox: Higher returns don't always result in better funding outcomes", Plansponsor magazine August 2008, pp. 18-20.
- "LDI in the US", Global Pensions, November 4th, 2008.
- "US Plans under fire over funding rules", Global Pensions, September 1st, 2008.
- "Liability-Driven Investing All Talk, No Action", FundFire August 20th, 2008
- "LDI Shift Underway, SEI Says", FundFire August 29th, 2008.
On Agent-Based Modeling of Financial Markets
- "Agent-Based Modeling: The Santa Fe Institute Artificial Stock Market Model Revisited", Lecture Notes in Economics and Mathematical Systems, Springer 2008.
- Review by Blake LeBaron in Journal of Artificial Societies and Social Simulation (JASSS) vol. 12, no. 2 (March 2009).
- Review by Krzysztof Piasecki in Zentralblatt Math vol. 1141, 2008.
- "Technical trading in the Santa Fe Institute Artificial Stock Market revisited", in: Journal of Economic Behavior and Organization 2006, vol. 61. no. 4, pp. 599-616.
- "Agentenbasierte Simulation von Aktienmärkten", in: Schmidt, R. and Gramlich, D. (Eds.), "Bankmanagment and Kapitalmarktforschung", Wiesbaden, Deutscher Universitätsverlag 2004.
On Monetary Policy (e.g., about the zero bound on nominal interest rates)
- "Geldpolitik angesichts der Nullschrane der Nominalzinsen: Ein Überblick", in: Zeitschrift für Sozialökonomie 40(136), 2003.
- "Geld als Informationsmedium: Implikationen für die Freiwirtschaft und für konkurrierende Währungen aus der Sicht neuerer geldtheoretischer Ansätze", in Zeitschrift für Sozialökonomie 38(129), 2001.
- "Die Nullschranke nominaler Zinsen als geldpolitische Restriktion in der wissenschaftlichen Diskussion", in: Zeitschrift für Sozialökonomie 37(124), 2000.
- "Das 'Zahlungsnetzwerk München-Geld': Eine Diskussion der theoretischen Grundlagen", in: Zeitschrift für Sozialökonomie 36(123), 1999.
- Book review: Nicholas A.J.L. Johnansen: Die Steuer der Zukunft und ihre Einwirkung auf geschäftliche Depressionen und volkswirtschaftliche Verhältnisse, Berlin: Puttkammer 1913, In: Herz, D. and Weinberger, V. (Eds.), Lexikon der ökonomischen Werke, Düsseldorf: Verlag für Wirtschaft und Finanzen 2006.
- Book review: D. Löhr / J. Jenetzky "Neutrale Liquidität – Zur Theorie und praktischen Umsetzung", Frankfurt/M.: Peter Lang 1996, In: Zeitschrift für Sozialökonomie 34(113), 1997.
Other (e.g., about efficient markets and unemployment)
- "Märkte sind weniger effizient als man glaubt", in Auf & Ab 3/2002, no. 17.
- "Ist nur die Arbeit zu teuer?", in: Zeitschrift für Sozialökonomie 34(113), 1997.
- "Beschäftigungspolitik im Widerspruch zwischen Wachstumszwängen und Wachstumsgrenzen", In: Rams, A. and Ehrentreich, N., "Arbeitslosigkeit – wie kann sie überwunden werden: Eine Kritik an den herrschenden Arbeitsmarkt- und Wachstumstheorien und ein Ansatz zu ihrer Weiterentwicklung", Lütjenburg: Gauke 1996, p. 67-117.
