AA bond shortage skews FTSE350 DB deficit calculations by £48bn

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A shortage of AA corporate bonds is leading to inconsistencies in the way FTSE350 companies calculate defined benefit (DB) deficits, Hymans Robertson says.

The firm said the lack of AA corporate bonds is the cause as the yield forms the discount rate used to calculate liabilities under the IAS19 accounting standard. Since the financial crises, a ra...

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