Unhedged pension schemes face funding risks as yield curve inverts

Kim Kaveh
clock • 3 min read

Pension schemes that have not hedged their liabilities could face funding issues as long-dated bond yields have plummeted, industry experts have warned.

It follows news yesterday (14 August), that the curve for yields on some UK gilts and US treasuries inverted, meaning that shorter-duration bonds, such as two-year gilts, gained higher yields than ...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

SPP sets out solutions to overcome barriers to productive finance success

SPP sets out solutions to overcome barriers to productive finance success

Absence of consistent definitions as well as legislation and regulation are barriers

Jonathan Stapleton
clock 26 September 2024 • 2 min read
L&G: Private markets can support greater DC member engagement

L&G: Private markets can support greater DC member engagement

Research finds inclusion of private markets could also drive higher contributions

Jonathan Stapleton
clock 25 September 2024 • 3 min read
SPP: The impact of the government's pensions review on investment strategy

SPP: The impact of the government's pensions review on investment strategy

Simon Bentley says the result is likely to be only ‘modest tweaks’ in endgame strategies

Simon Bentley
clock 25 September 2024 • 3 min read
Trustpilot