More choice is a sign of greater prosperity, right? That tall skinny soya cappuccino extra hot (without chocolate on top) was just what you wanted, wasn’t it? It might not be. It turns out that the more choice you give…
Category Archives: pension funds
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Pension fund black hole much bigger than previously thought
- Topics
- gilts, pension funds
Posted January 2nd, 2007
A recent report from the Pensions Regulator states that the UK’s pension fund liabilities exceed pension fund assets by £440bn. The calculation is now a little out of date as it was made on March 2006, so given that bond…
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Escalating M&A + pension fund crisis = inverted yield curve
- Topics
- BB rated, corporate bonds, pension funds
Posted December 21st, 2006
The impact of pension fund demand on long dated bonds is generally understood, but few realise that rising takeover activity is amplifying this effect. In order to protect people’s pensions, the pension regulator is insisting that the acquiring company fully…
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Rapid changes in life expectancy will continue to drive the bond market
- Topics
- pension funds, research
Posted December 5th, 2006
Life expectancy isn’t just increasing, the rate of change is actually accelerating, thanks to rapid medical advancements. Great news for humankind, great news for owners of long dated bonds, but a nightmare for pension funds. Recent research from Paternoster,…
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Longevity starts to worry the actuaries
- Topics
- bird flu, corporate bonds, pension funds
Posted November 13th, 2006
One of the biggest drivers of corporate bond returns over recent years has been demand for long dated assets by company pension schemes in order to match retirement liabilities. We think this trend will continue, not least because the length…










