There has been some excitement lately about the fact that 10-year swap spreads in the U.S. have turned negative. For those in Canada with some knowledge of interest rate swaps, it is important to understand the primary drivers of swap spreads, what has happened to swap spreads in Canada as the financial crisis evolved and […]
Over the past several months, news headlines have been filled with the troubles pension funds have found themselves in. Indeed, there are a multitude of issues pension funds have had to deal with, including lack of asset liquidity, poor equity returns, low bond yields and longer life spans. While many articles have appeared on the […]
Asset mix has been an important determinant in many defined benefit pension plans’ underfunded status. Many in the pension industry have adhered to a 60/40 equities/fixed income rule. Personal finance experts advise individuals to increase allocation to fixed income as they age, so why do pension plans not receive similar advice? It is assumed that […]