Last October, my colleague Tom Dobell wrote about the absurdity of how companies are forced to treat their long-term pension liabilities.
After another couple of reporting periods characterised by falling discount rates, I wanted to lay out in a slightly more mathematical fashion why I think Tom… Read the article
Pensions are long-term obligations. Falling interest rates have affected both the way that companies calculate the size of these liabilities, but also the assumed growth rates of the assets that they hold in order to pay those pensions.
What is quite extraordinary in my view is that QE, which now… Read the article