UK - Problems with the valuation of UK corporate bonds are stifling interest from institutional investors, a leading fund manager claims.
Specialist fixed income manager Pimco says there are some UK-specific issues critical to the performance of the domestic corporate bond market.
Head of UK fixed income Mike Amey says that proposed changes in the regulations of the solvency calculation for life funds is creating an uneven playing field.
He said: “They are changing so that life funds require capital provision against corporate bonds. We think that’s going to make the life funds less keen on adding further to what is already a large weighting to corporate bonds.
“We think they will protect their positions by selling their longer-dated corporate bonds in favour of shorter-dated corporates because the stress test is based upon a yield shift.”
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).