Risk Archives - Page 12 of 37 - Pension Policy International

01DecDecember 1, 2022

US. Corporate pension buyouts reach $26 billion in Q3 — LIMRA survey

U.S. corporate pension plan buyout sales totaled $26.1 billion in the quarter ended Sept. 30, the highest volume for a third quarter, a LIMRA survey found. It also brings the year-to-date volume of buyout sales to $41 billion, breaking the previous annual record of $36 billion in 2012 in just the first three quarters of the year. LIMRA projects the total volume for 2022 will exceed $50 billion. The third quarter was highlighted by the second-largest U.S. pension buyout transaction in...

December 1, 2022

NewsLongevity, Pension Management, Risk, US

01DecDecember 1, 2022

OECD Pensions Outlook 2022

The OECD Pensions Outlook discusses how to introduce, develop and strengthen asset-backed pension arrangements, the role that employers can play in their provision, and the implication of different fee structures on individuals saving for retirement and on providers. The 2022 edition focuses on describing best practices for developing mortality tables and providing policy guidance on how to design, implement and continue the operation of non-guaranteed lifetime retirement income arrangements. Get the report here

December 1, 2022

Books, Books, Pension design, Pension Management, Pension Reform, Regulation, Reports, Slider, Slider, System Sustainability2022, Investment, Pension Reform, Pensions Management, Risk, System sustainability

21NovNovember 21, 2022

UK regulators call for action on hidden leverage threat to pension funds

Regulators and policymakers are calling for action to address the risks associated with pension funds’ use of derivatives, after key watchdogs admitted last week that they were unprepared for the crisis that hit the industry in September. The meltdown, now the focus of four separate parliamentary probes, revealed regulators did not have a reliable picture of the scale of hidden leverage in liability-driven investment (LDI) strategies, which cover about £1.4tn of the future promises made by UK defined benefit pension...

November 21, 2022

News2022, Investment, Pension Management, Regulation, Risk, UK

11NovNovember 11, 2022

Liquidity crunch tops institutional investors’ greatest tail risks

The top three tail risks for global institutional asset owners are an unexpected liquidity crunch, a military conflict in the Asia-Pacific region and a major cyberattack, according to a new survey conducted by PGIM, the money management subsidiary of Prudential Financial. The survey of 400 senior investment officials at asset owners representing more than $12 trillion in assets shows the greatest common level of concern is a liquidity crunch in capital markets resulting in a market crash, according to a...

November 11, 2022

NewsPension Management, Risk

03NovNovember 3, 2022

Risk Pooling and Precautionary Saving in Village Economies

By Marcel Fafchamps & Aditya Shrinivas We propose a new method to test for efficient risk pooling that allows for intertemporal smoothing, non-homothetic consumption, and heterogeneous risk and time preferences. The method is composed of three steps. The first one allows for precautionary savings by the aggregate risk pooling group. The second utilizes the inverse Engel curve to estimate good-specific tests for efficient risk pooling. In the third step, we obtain consistent estimates of households' risk and time preferences using...

November 3, 2022

Articles, Savings2022, Investment, Pension design, Risk

28OctOctober 28, 2022

Optimal Savings and Portfolio Choice with Risky Labor Income and Reference-Dependent Preferences

By Servaas van Bilsen, Roger J. A. Laeven & Theo Nijman This paper explores the joint impact of reference-dependent preferences and non- tradable risky labor income on optimal savings and portfolio decisions. We develop a non-trivial solution procedure to determine the optimal policies. Our results reveal that the impact of permanent labor income shocks on both the optimal savings rate and the optimal portfolio share is more pronounced under reference- dependent preferences than under CRRA preferences. In particular, we find...

October 28, 2022

Articles, Investing, Savings2022, Income, Pension design, Risk

27OctOctober 27, 2022

Milliman analysis: Competitive pension risk transfer buyout rate rises 320 basis points to 100.1% during September

Competitive bidding process saves about 3.0% of buyout costs as of September 30 Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). As the Pension Risk Transfer (PRT) market continues to grow, it has become increasingly important to monitor the annuity market for plan sponsors that are considering transferring retiree pension obligations to an insurer. During September, the estimated cost to transfer retiree pension risk to an insurer in...

October 27, 2022

NewsRisk

19OctOctober 19, 2022

Dutch central bank urges pension funds to guard against UK-style crisis

The Dutch central bank is calling on the country’s pension funds to consider boosting holdings of cash and other liquid assets to ensure that they can avoid the turmoil that has hit the UK. Officials at the De Nederlandsche Bank have asked local retirement funds to check for signs of stress, recommending that they review liquidity rules and report on any need for fire sales of assets, people briefed on the matter told the Financial Times. The move comes as UK...

October 19, 2022

NewsNetherlands, Regulation, Risk

17OctOctober 17, 2022

Economic Concerns Likely to Spur Pension Risk Transfers

The vast majority of plan sponsors say inflation and rising rates are influencing their de-risking decisions. Inflation, market volatility, rising interest rates, and geopolitics are potentially accelerating the pension risk transfer market, according to a report from MetLife. MetLife’s Pension Risk Transfer Poll, which heard from 251 defined benefit plan sponsors who have de-risking goals and $100 million or more in plan assets, found that 95% say higher inflation is “very or somewhat impactful” on their decision to move forward with...

October 17, 2022

NewsInvestment, Risk, Transfers

14OctOctober 14, 2022

Herd Behaviour of Pension Funds by Asset Class

By Jacob Antoon Bikker & Ian Koetsier This study investigates asset herd behaviour for Dutch pension funds from 1999 to 2014 using quarterly data. We find herd behaviour for investments in twenty asset classes including non-traditional asset classes, and to both purchasing and selling. Pension funds’ herd behaviour is particularly high in alternative investments, which might increase herding in general, as pension funds move their portfolio towards these assets in recent years. Herding intensity is higher during stock market crises,...

October 14, 2022

Articles, Pension Management2022, Investment, Returns, Risk

December 2022

US. Corporate pension buyouts reach $26 billion in Q3 — LIMRA survey

OECD Pensions Outlook 2022

November 2022

UK regulators call for action on hidden leverage threat to pension funds

Liquidity crunch tops institutional investors’ greatest tail risks

Risk Pooling and Precautionary Saving in Village Economies

October 2022

Optimal Savings and Portfolio Choice with Risky Labor Income and Reference-Dependent Preferences

Milliman analysis: Competitive pension risk transfer buyout rate rises 320 basis points to 100.1% during September

Dutch central bank urges pension funds to guard against UK-style crisis

Economic Concerns Likely to Spur Pension Risk Transfers

Herd Behaviour of Pension Funds by Asset Class