Scheme actuaries use a nominal gilt yield curve, which they assert directly matches the currency and inflation exposure of those…
"prefers to compare the returns with a liability proxy (a mixture of gilt maturities)" Are those Index-Linked gilts, given that…
I agree the major problem with DC is that it has been designed as a savings plan not to provide…
Oh, and I think this confusion leading to DB being viewed as a pot by members is an unintended consequence…
Tag Archives: gilts
What makes a New Town “good” and how do we pay for them?
This is the video of the discussion we had yesterday with Con Keating and Thomas Aubrey The slides that accompany the video can be downloaded here or read from this slide share. This blog is the last in … Continue reading
The difference between gilts and swap prices and what it can mean to your pension
I was pulled up by Con Keating in a comment on a recent article on bulk annuities. Con reprimanded me after I’d said that annuities were priced against gilts (what I was told to say when I was selling “lifestyle” … Continue reading
We don’t have to have a gilt-less pension system – give collective DC and DB half a chance!
The people I hang out with are bifurcated between the DC people (consumer facing) and those who deal (institutionally) with funding. Put Richard Smith among the consumerists and you get Jo Cumbo writing for him, put Con Keating at the … Continue reading
OBR says Gilts are in the pension graveyard – hope they’re right!
Earlier this week I blogged on the EC’s worry that pension schemes are falling out of love with owning gilts. Today, Toby Nangle, the fellow who makes macro-economics accessible to fools like me, backs up the contention that UK pension … Continue reading
Should Pension Schemes Ditch Gilts?
Yesterday saw the implementation of the funding code, tomorrow may see it rewritten We are fast approaching the Mansion House Speech (Thursday) when we can confidently expect Government to address the issue of valuing and funding defined benefit pension schemes. … Continue reading
Actuarial heresy or common sense? LCP question the reputation of the risk-free rate.
The gilt yield is generally accepted as the benchmark for risk-free returns. It’s what Government debt over various time-frames will reward you with and it is accepted as a benchmark because the chance of the UK Government defaulting on … Continue reading
“No use crying over pensions” – Arun Muralidhar’s DC reset.
SeLFIES (Standard-of-Living indexed, Forward-starting, Income-only Securities). The SeLFIES bond is a single, liquid, low-cost, low-risk instrument, easy-to-understand for even the most financially unsophisticated individual, because it embeds accumulation, decumulation, compounding and inflation-adjustments. SeLFIES is good for governments too, as the … Continue reading
Why are the future costs of USS membership linked to the gilt yield?
In this Guest post , Jackie Grant and Mark Taylor-Batty wonder why estimates of USS future service costs go up and down in line with the gilt yield. Jackie and Mark have expressed thanks to Con Keating for his expertise … Continue reading
Has TPR become the insurer’s new trade body?
Over the bank holiday weekend, I’ve been blogging about the new orthodoxy, that buy-out of benefits is in the member’s best interests. Quietroom have published an article in Professional Pensions explaining how best to get this message across and … Continue reading
We aren’t all taking SeLFIES yet!
Is there an argument for the State to issue a new kind of pension bond to compete with annuities Arun Muralidhar believes there is and he has evidence that such bonds are popular, in Brazil. This blog asks whether now … Continue reading
Thanks for your reply. I hope it does successfully "embed both the real rate and expected inflation in one number".…