Ryan ALM
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It Was Nice While It Lasted
According to Russell Investments that tracks twenty large corporate pension plans with assets greater than $20 billion, which they've been doing since 2005, 2019 saw the lowest combined contribution amount since 2008. The prior two years witnessed exceptionally strong contributions,...
Yeah, I Think That We Have!
On January 29, 2020, I penned a post on this blog asking the question "have we outsmarted ourselves?" Well, I don't think that there is any question that we, as an industry, have, and it is crushing the very funds...
POBs - The Time Is Right!
Now is not the time to put one's head in the sand. There are incredible opportunities to be captured. For one, public pension systems looking to close some of their funding gap should take advantage of the lower valuations in...
Ryan ALM Alert - Now Is The Time!
On February 26, I wrote that given the market action in US government bonds that it might be the prudent time to sell anything 10-years and out. At that time the 10-year Treasury had a yield of 1.33%, while the...
And These Plans De-risked - mostly!
According to a recent P&I article, three different reports on the funded status of Corporate DB plans highlighted the fact of what we at Ryan ALM have been stating, February was ugly, and this for a universe of pension plans...
How bad? Ugly!
The start to 2020 has been nothing short of UGLY for pension America. A generic asset allocation produced a -4.93% return for the first two months (2/29/20) while Ryan ALM's liability index was up 12.01% for the same time frame....
It's The Accounting Rules!
I was asked a question by the moderator (a plan sponsor) at the Opal/LATEC conference regarding the reason that DB pension systems are struggling to meet the promised benefits. Obviously, there are many contributors to this problem, but I reminded...
BLA Loans at <2%!
Remember H.R. 397? This is the Rehabilitation for Multiemployer Pensions Act of 2019 (aka the Butch Lewis Act). It called for the setting up of a new agency within the U.S. Treasury Department called the Pension Rehabilitation Administration (PRA). It...
Fed Cuts Rates - Retirees Get Shafted
Once again, this aggressive Fed Funds rate cut is hosing those trying to live off a modest savings account. For years our seniors have been forced to take on more and more risk, both in bonds and equities, to try...
You Must Lead a Horse To Water AND Make Them Drink!
Perhaps it isn't surprising to you, but I find the Supreme Court's decision in the ruling against Intel's investment policy committee to be somewhat shocking. I fear that this decision will result in unintended consequences that will ultimately harm plan...