SOLVING THE PENSIONS CONUNDRUM

Many thanks to Bloomberg Intelligence for hosting their conference ‘Solving the Corporate Pension Conundrum’ yesterday. We met a few new faces amongst some old friends and the talks and conversations were thought provoking.

It is becoming increasing evident that marking-to-the-gilt-market is all very well as a point of reference but must be viewed in the broader market context. One slide from the engaging Jon Hatchett showed the relative decline since QE in gilt yields (staggering) and other credit markets (broadly flat) and shouts at alternatives to deflate the pensions deficit balloon.