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

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

clock • 3 min read
Credit Benchmark research advisor David Carruthers
Image:

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...

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

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Benefit

Tender Watch: Donaldson selects First Actuarial for scheme admin services

Tender Watch: Donaldson selects First Actuarial for scheme admin services

Firm to provide admin for 442 members of filtration manufacturer’s pension plan

Professional Pensions
clock 18 June 2025 • 1 min read
Pension Schemes Bill to unlock potential £600bn superfund market

Pension Schemes Bill to unlock potential £600bn superfund market

LCP says simplified gateway tests open up superfund opportunity to half of schemes

Jasmine Urquhart
clock 16 June 2025 • 1 min read
FIF25: Opportunities with DB pensions

FIF25: Opportunities with DB pensions

No ‘one size fits all’ approach to endgame, with changing allocations within DB schemes

Jasmine Urquhart
clock 04 June 2025 • 1 min read
Trustpilot