Credit downgrades pose 'serious challenge' for UK schemes

James Phillips
clock • 2 min read
Some Heathrow bonds have been downgraded over the past two years
Image:

Some Heathrow bonds have been downgraded over the past two years

A falling average quality of fixed income indices combined with intensifying competition for high-quality assets could make it more challenging and costly for pension funds using benchmarks.

More than $1trn of corporate issues have been downgraded since the start of Covid-19, AXA Investment Managers said, leaving high-quality assets in short supply while demand is rising. Over the last...

To continue reading this article...

Join Professional Pensions

  • Unlimited access to real-time news, analysis and opinion from the industry
  • Receive our in-depth monthly magazine in either print or digital format
  • Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
  • Receive important and breaking news stories selected by the Editors in our daily newsletter
  • Hear from industry experts and other forward-thinking leaders
  • Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date

Join now

 

Already a Professional Pensions member?

Login

More on Defined Benefit

The second DB funding code consultation: What you said…

The second DB funding code consultation: What you said…

PP speaks to the industry about what they want to see laid out this summer

Hope William-Smith
clock 20 May 2022 • 2 min read
PP Live: Superfunds an 'obvious' endgame choice

PP Live: Superfunds an 'obvious' endgame choice

A breakdown of the different models the industry’s two superfunds offer

Hope William-Smith
clock 17 May 2022 • 2 min read
BTPS chief executive Morten Nilsson

BT Pension Scheme awards $1bn private equity mandate

Horizon III mandate to be managed by Federated Hermes subsidiary

Hope William-Smith
clock 17 May 2022 • 1 min read
Trustpilot