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40% of DB schemes 'may have sponsor credit issues'

Some pension funds may be forced to rely on asset sales to meet margin calls

Stephanie Baxter

13 October 2022 • 3 min read

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Credit Benchmark research advisor David Carruthers

Nearly 40% of sponsors have significantly lower credit ratings than their pension schemes, which increases the likelihood of those funds being forced to rely on asset sales in the liability-driven investment (LDI) crisis, according to research.

Research by Credit Benchmark found that 63 out of 156 defined benefit (DB) pension sponsors have credit ratings that are more than three notches weaker than their pension funds. It comes as some sc...

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40% of DB schemes 'may have sponsor credit issues'

Some pension funds may be forced to rely on asset sales to meet margin calls

Nearly 40% of sponsors have significantly lower credit ratings than their pension schemes, which increases the likelihood of those funds being forced to rely on asset sales in the liability-driven investment (LDI) crisis, according to research.

Join Professional Pensions

Already a Professional Pensions
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40% of DB schemes 'may have sponsor credit issues'

Some pension funds may be forced to rely on asset sales to meet margin calls

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Nearly 40% of sponsors have significantly lower credit ratings than their pension schemes, which increases the likelihood of those funds being forced to rely on asset sales in the liability-driven investment (LDI) crisis, according to research.

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DWP responds to WPC report on DB pensions market

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