Pension fund risk management [20]

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Bullet points include: Ideally we want a forward looking assessment of risk implicit in the pension promise I.e. of the creditworthiness of the sponsor in meeting its (long term pension) obligations This is the type of assessment that credit rating agencies are supposed to provide via credit ratings Or, for a more market consistent view, what markets do when formulating the price (and hence yield spread) at which an obligor’s debt obligations trade in the market Problem therefore requires application of credit pricing / credit risk analysis techniques

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