Rejoice
I say unto you, that likewise joy shall be in heaven over one sinner that repenteth, more than over ninety and nine just persons, which need no repentance. Luke 15.7
“Miracles and mirages of #CDC ” Excellent blog by Stefan Lundbergh of Cardano (see my pinned tweet for my @ImperialBiz lecture on #CDC https://t.co/0FYiinWfE9
— John Ralfe (@JohnRalfe1) March 25, 2021
Highlights #CDC
1 “The same contributions, the same investment costs, the same investment returns will result in, hold your breath, the same financial outcomes.”2 “Perhaps, the acronym CDC should really stand for Complicated DC!”
— John Ralfe (@JohnRalfe1) March 25, 2021
John’s tweet explains that CDC looks remarkably like a DC default investment fund – except with an extra letter.
3 “The two critical assumptions behind intergenerational risk sharing are that participation is mandatory and that the arrangement will continue perpetually.” #CDC
— John Ralfe (@JohnRalfe1) March 25, 2021
I might take issue with “mandatory” and replace it with “universal”, but I agree with the second point whole-heartedly.
4 “we don’t need to move to a CDC solution to reap the benefits of collective bargaining power: in the UK, most of it is already structurally achievable via larger master trusts.” #CDC
— John Ralfe (@JohnRalfe1) March 25, 2021
I agree
5 “Perhaps it is time for the legislator to explore the possibility for UK master trusts to develop pay-out alternatives that include pooling of individual longevity but without capital guarantees?” #CDC
— John Ralfe (@JohnRalfe1) March 25, 2021