PT - JOURNAL ARTICLE AU - Ross I McLellan AU - Will Kinlaw AU - Erin Abouzaid TI - Equity Turbulence, Fixed Income Illiquidity, and Portfolio Reallocation: <em>The Case for Synthetic Rebalancing</em> DP - 2009 Jun 20 TA - Trading PG - 18--27 VI - 2009 IP - 2 4099 - http://guides.pm-research.com/content/2009/2/18.short 4100 - http://guides.pm-research.com/content/2009/2/18.full AB - Equity Market reversals, combined with historically illiquid fixed income markets have left many global plans out of balance. Analysis of 13 previous periods of market turbulence suggests that plans should regularly rebalance to their desired allocations. To ameliorate the substantial cost of reallocation in a less-liquid market, plans should use derivative instruments to achieve “synthetic rebalancing”.