We've been discussing pension obligation bonds (POBs) for the last couple of years and it seems as if folks are listening! According to a WSJ article that was published during the weekend, there have been 72 POBs issued in 2021...

We, at Ryan ALM, are big supporters of Pension Obligation Bonds (POB) provided that the proceeds are used to defease the pension system's liabilities chronologically for as far out as the POB allocation will permit. We are also encouraging the...

There once was a time when investors demanded more from corporate America than just the opportunity to invest in companies with the hope of a return on that investment. They demanded and were given significant dividends. It was not unusual...

In our recent post , "Right Idea, Wrong Implementation" we discussed the fact that using STRIPS in lieu of coupon bonds would neither reduce the cost of de-risking nor work more effectively than a cash flow matching portfolio. We believe...

I'm happy to share with you today a wonderfully written article by Eleanor Laise, Reporter, Barron's Group, who effectively captures the human toll inflicted by MPRA legislation that saw 18 multiemployer pension plans slash promised benefits to their participants. Highlighting...

There recently appeared an article in FundFire that suggested that plan sponsors, particularly corporate sponsors, were using their allocation to fixed income inefficiently. We absolutely agree! However, we find that the suggested implementation cited in that article to be just...

I was extremely pleased to be asked to participate in a Barron's Live interview today. Eleanor Laise and I discussed ARPA and other matters related to DB plans. With regard to ARPA we discussed the SFA calculation and discount rate...

We've written from time to time about individual pension plans whose unique situation has surprised us. Here is another example of a plan and the current asset allocation that just floored us! Here are the details: Closed plan, 150% funded...

I've been as much a critic of the PBGC's Interim Final Results (IFR) as anyone. I was disheartened by how the PBGC decided that the Special Financial Assistance (SFA) should be calculated. That said, struggling multiemployer pension systems are still...

There are many definitions of risk, but the one that we think is appropriate for pensions is that risk is the UNCERTAINTY of achieving the objective. In the case of a defined benefit pension plan, risk is not the volatility...