UK - Defined benefit (DB) schemes will now be able to use bonds to immunise against inflation and market risk, according to PensionsFirst.
Timothy Lyons, partner at PensionsFirst, said: "Trial marketing has shown that our coloured bonds are easily understood and help to set in progress the discussion which enables us to tailor a scheme specific solution."
Lyons noted each of the bonds could also be issued with gearing, dynamic performance and profit participation.
"Many schemes are in a better position today with regards to their scheme deficits than for some years, but with doubts now surrounding the equity markets and the likelihood of falling interest rates, there is a huge incentive for schemes to remove their exposure to deficit volatility," added Lyons.
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