4 ms·
>Virtually every corporate treasurer in America would recoil at the idea of issuing a “cost-of-living” bond — a noncallable obligation with coupons tied to a pr
by ikeboy 9y ago
>Virtually every corporate treasurer in America would recoil at the idea of issuing a “cost-of-living” bond — a noncallable obligation with coupons tied to a price index. But through the private pension system, corporate America has in fact taken on a fantastic amount of debt that is the equivalent of such a bond.
https://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm https://www.treasurydirect.gov/indiv/products/prod_tips_glan...
So do any companies use tips to fund their pension obligations?
- misnamed 9y agoI assume so these days, but TIPS didn't exist when this article was written. And probably not exclusively TIPS in any case (but perhaps combined with equities, etc.).