ERM for Pension Funds [25]

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Bullet points include: Presentation potentially challenging. Risky versus riskless bond pricing doesn't look like a traditional balance sheet as per (1) (with or without an SCR). Instead it looks like a value decline as per (2). May be multiple stakeholders with different interests and claims on the structure. Unit increase in the tangible asset pool does not necessarily create unit improvement to the quantum and/or security of the pension promise (as per a DC arrangement). The value increase might primarily accrue to the sponsor. Premium vs. risk free. Spread x duration. Risky bond price

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