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Usually pension fund solvency calculations are based on returns being related to the long bond interest rate, so as the long term bond rate goes up, your liabil
by Scoundreller 4y ago
Usually pension fund solvency calculations are based on returns being related to the long bond interest rate, so as the long term bond rate goes up, your liabilities decrease.
- Aunche 4y agoYour liabilities only decrease in the interest exceeds the payouts, but I doubt that's happening even as they're raising interest rates. What are they supposed to do in the meantime? Pray for the central bank to raise interest rates while your liabilities accrue?