UK - Independent pricing and valuations outfit Markit has written to the Pension Protection Fund (PPF) urging it to include credit derivates within its definition of contingent assets.
Markit said that whilst it supported the PPF’s board’s objective of “encouraging positive risk management by employers in relation to their pension schemes,” and agreed that the risk-based levy could play an important role in encouraging the use of contingent assets, Markit felt that credit derivatives should be included.
In the letter to the PPF Tim Barker, executive vice president of Markit, said: “The credit derivatives market has grown tremendously in recent years and is now estimated to be more than $12 trillion in size according to the most recent International Swaps and Derivatives Association (ISDA) survey. As the market has grown in size, it has also matured with the widespread use of industry standard documentation, pioneered by ISDA, increasingly robust operational infrastructures and established processing procedures.”
He said the credit derivatives market was a fast growing, maturing and an integral part of the financial landscape for a wide range of institutions, including pension funds.
By Alex Beveridge
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers