Rising equity and bond prices as well as a higher discount rate conspired to put corporate pension funds in their best position since the market crash in 2008.
Bank of New York Mellon's Investment Strategy & Solutions Group said the typical plan ended the month with 93.9 percent of its liabilities funded, up from 91.8 percent in October.
"Corporate bond yields have resumed their upward march, following a pause in October," said Jeffrey B. Saef, managing director of BNY Mellon, and head of the solutions group. "The corporate discount rate is now 109 basis points higher than in November of 2012 and the funded ratio for corporate pension plans is up 16.8 percentage points since the beginning of the year. As a result we see more plan sponsors reducing their exposure to market volatility."
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
