The pendulum swings in schemes' favour

Jonathan Stapleton looks the effect rising bond yields are having on schemes

Jonathan Stapleton
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Over the past two months, gilt yields have risen significantly with benchmark 30-year gilt yields rising from 2.96 on 1 May to 3.60 on 28 June due to expectations of the start of monetary policy normalisation and the confirmation that US Federal Reserve will reduce quantitative easing with a view to completing this in 2014.

But what effect has this rise in yields had on schemes? How have liabilities and funding levels reacted to this change?   Asset liability mis-match Aon Hewitt principal and actuary Paul Mc...

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