White Paper: the COLI Overlay Strategy for Hedging Deferred Comp
For decades, companies have purchased Corporate-Owned Life Insurance to fund/hedge their deferred compensation plan liabilities. In recent years, however, many of these companies have decided they would prefer to utilize total return swaps for this purpose- to materially reduce costs, improve the accounting treatment, and reduce tracking error between the hedge and the plan.
For these companies, the best option may be the COLI Overlay strategy. Atlas's senior partners have authored this white paper on the key considerations with the strategy.