Falling discount rates cause scheme liabilities to soar

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The narrowing spread between yields on corporate bonds and gilts led to falling discount rates and soaring liabilities last year, JLT Pension Capital Strategies says.

Discount rates have more than halved from record high of 2.85% in 2009 to 1.2% - much closer to index yield on long-dated AA corporate bonds. In its quarterly guide for finance directors however...

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