Political economy Archives - Page 4 of 25 - Pension Policy International

21OctOctober 21, 2022

The politics and economics of pension privatization in latin america

By Raúl Madrir This research note seeks to explain 'lvhya large nUl11ber of Latin Atnerican countries have privatized their pension systel11s in recent years. It argues that the privatization schelnes are a response to the severe capital shortages that have plagued their countries intennittently in recent years rather than to the financial problelns facing son1e of the pension systelns. The likelihood of pension privatization, 1 argue, is determined in large part by the vulnerability of countries to capital shortages as...

October 21, 2022

Articles, System Characterization2022, Latin America, Political economy, Private Pensions, Social Protection

18OctOctober 18, 2022

Experts debate length severity recession

The likelihood of an economic recession in the U.S. is a near certainty as inflation and interest rates climb, according to industry experts who spoke to Pensions & Investments. But there's a divergence of views when it comes to the potential length and severity of the downturn. In the worst-case scenario — a lengthy recession — institutional investors will have few places to seek respite from the gloom. Still, managers agreed the best place for institutional investors to park their money...

October 18, 2022

NewsPension design, Political economy

12OctOctober 12, 2022

Reforma Previsional en Chile: una demanda pendiente

Las AFP, o Administradoras de Fondos de Pensiones, cumplieron 42 años de funcionamiento. Antes existía en nuestro país un sistema de pensiones de reparto (sistema que se financia con los aportes que realizan los trabajadores activos y el Estado, por lo tanto el dinero aportado va a un fondo común con el cual se pagan las prestaciones; este sistema se concibe bajo los principios de solidaridad intergeneracional e intrageneracional), que agrupaba a un conjunto de cajas previsionales. Existía un consenso,...

October 12, 2022

Noticias, NoticiasInvestment, Pension Management, Political economy, Risk

12OctOctober 12, 2022

Global financial instability risk hits new heights – IMF

A series of "cascading shocks" have raised the risk of global financial instability to new levels, officials with the International Monetary Fund said Tuesday. "It's difficult to think of a time where uncertainty was so high," Tobias Adrian, director of the IMF's monetary and capital markets department, said at a press briefing on the IMF's October 2022 Global Financial Stability Report. "The kind of risk we are flagging is the highest, outside of acute crisis," Antonio Garcia Pascual, deputy division chief...

October 12, 2022

NewsInvestment, Pension Management, Political economy, Risk

29SepSeptember 29, 2022

BoE’s £65bn move driven by pension fund panic

The Bank of England stepped in to calm markets after some types of pension funds were at risk of collapse. It pledged to buy £65bn of government bonds after Friday's mini-budget sparked turmoil on financial markets and the pound plunged. Investors had demanded a much higher return for investing in government bonds, causing some to halve in value. Pension funds, which invest in bonds, were forced to start selling, sparking fears of a fresh market downturn. The Bank said its decision to buy...

September 29, 2022

NewsPension Management, Political economy, UK

28SepSeptember 28, 2022

UK pensions hit with £100m margin calls as gilts and sterling slide

At least three LDI managers request emergency capital as others consider unwinds to avoid default. UK pension funds have been hit with variation margin calls of as much as £100 million ($107 million) each, after sharp falls in gilts and sterling pushed mark-to-market valuations on derivatives and leveraged repo positions heavily against them. Simeon Willis, chief investment officer of consultancy XPS Pensions Group, says he knows of three different fund managers running pooled pension portfolios that have requested emergency capital...

September 28, 2022

NewsInvestment, Political economy, UK

22SepSeptember 22, 2022

US. Fed hikes interest rates 75 basis points; now targets year-end funds rate of 4.4%

The Federal Reserve on Friday agreed to a request from Treasury Secretary Steven Mnuchin to return unused funds from emergency lending programs. The Federal Reserve hiked interest rates by 75 basis points for the third consecutive meeting on Wednesday, boosting the target range for the federal funds rate to a range of 3% to 3.25%, in a continuing bid to tamp down inflation. The Federal Open Market Committee, which concluded its two-day meeting on Wednesday, had previously increased rates by 75...

September 22, 2022

NewsPolitical economy, US

20SepSeptember 20, 2022

Pensions, with inflation soaring, 2022 will be the worst year to retire

What impact will inflation have on pensions? An answer comes from the tenth edition of Natixis IM’s Global Retirement (GRI) Index 2022. Analysis suggests that 2022 may be the hardest year to retire in recent history. This is due to a market environment that affects retirement savings. In practice, the high inflation rate will erode part of the capital set aside but the volatility on the markets as well as the low interest rates also weigh. These are the...

September 20, 2022

NewsPension design, Political economy, savings

06SepSeptember 6, 2022

Ghana. Pensions industry loses US$800 million in 2 years to weakening cedi

The Executive Secretary said although the cedi value of assets under management (AUM) has increased, the dollar value of those assets has fallen. Detailing the situation in an interview with the B&FT, Mr. Esso said: “The effect of the [local] currency’s depreciation has affected the assets under management in the pensions industry. In 2020 the industry in cedi terms was about GH¢22billion, and when you juxtapose that with the dollar there was about US$3.8billion. “Currently, we are looking at an estimate...

September 6, 2022

NewsGhana, Political economy

23AugAugust 23, 2022

Australia’s Pensions Suffer Worst Year Since Financial Crisis

Australia’s pensions posted their worst annual performance since the global financial crisis as markets were roiled by central banks’ aggressive rate hikes and the war in Ukraine. Read also Should Pension Funds ‘Invest’ in Crypto? Guardians of the world’s fifth largest pension pot shed A$92.8 billion ($64 billion) on investments in the fiscal year through June 30, the biggest loss for the period since 2009, according to Australian Prudential Regulation Authority data released Tuesday. That saw the pool of savings fall...

August 23, 2022

News2022, Australia, Investment, Political economy

October 2022

Experts debate length severity recession

Reforma Previsional en Chile: una demanda pendiente

Global financial instability risk hits new heights – IMF

September 2022

BoE’s £65bn move driven by pension fund panic

UK pensions hit with £100m margin calls as gilts and sterling slide

US. Fed hikes interest rates 75 basis points; now targets year-end funds rate of 4.4%

Pensions, with inflation soaring, 2022 will be the worst year to retire

Ghana. Pensions industry loses US$800 million in 2 years to weakening cedi

August 2022

Australia’s Pensions Suffer Worst Year Since Financial Crisis