Convexity – The Forgotten Risk for Pension Plans

Convexity – The Forgotten Risk for Pension Plans

Pension risk is asymmetric in more ways than one Most sponsors of corporate pension plans are familiar with their risk being asymmetric: they only benefit to a point if a plan’s funding level improves, but are on the hook for all underfunding if it does not. This...
2018 Pension Plan Report Card – C+ Year

2018 Pension Plan Report Card – C+ Year

Last year was a so-so year at best for most plan sponsors. For most of the year things looked good but by the end of 2018 there were few things to celebrate. The good news was that interest rates were up year-over-year, but, in December, rates gave up some of the...
2016 Pension Plan Report Card – Mostly Above Average

2016 Pension Plan Report Card – Mostly Above Average

  Download a PDF version of this article… 2016 was an interesting year for many reasons. Long corporate interest rates continually declined until just after mid-year and then shot up after Election Day. At their lowest point, rates were almost 1% below where...