October was positive for FTSE 100 UK pension schemes, with the overall
deficit reducing by £11.0bn to £43.5bn, it did little to improve the
risk picture, according to the first issue of PF Risk Report.
The
new publication from PensionsFirst, which provides advanced risk
management and advisory services to the defined-benefit pensions
industry, said that at the end of October, the one-month 95%
value-at-risk figure on an IAS19 basis was £25.4bn.
This
means that in November there was a 1-in-20 chance that the IAS19
deficit could increase by £25.4bn or more - and the expectation that in
one of the next twenty months it will. "The corresponding VAR figure at
September month-end was £26.6bn, so the improved deficit position
changed little from a risk perspective," commented the report.
The
PF Risk Report breaks down pension risk into its key components. On an
uncorrelated basis, interest-rate risk is the largest risk factor,
contributing £17.8bn to the VAR, closely followed by equity risk, which
contributes £15.7bn. The report also focuses on inflation, FX, credit
and property risk exposures, while ignoring longevity, which is a
genuine long-term risk exposure but has negligible volatility in the
short term.
The report illustrates the impact of the key
factors that could cause variation in deficits. For example, a 20%
decrease in equities would increase the aggregate deficit by £34.2bn
and a 1% increase in long-term inflation would increase the deficit by
£60.8bn. The two events combined would increase the deficit by almost
£100bn.
"The simple fact is
that many UK companies (not just those in the FTSE 100) have
significant unhedged exposure to financial market volatility through
their pensions schemes", the report stated.
The report
puts into context the expectation that the monthly accounting deficits
of the FTSE 100's UK pension schemes will move by £25.4bn at least once
in a two-year period by underlining the fact that in August 2010 the
accounting deficits increased by £20.8bn, driven primarily by a 60bp
fall in interest rates. "And it is important to note that while...such
large monthly movements can be reasonably anticipated, there is also
the potential for much more extreme outcomes," the PF Risk Report concluded.
It's
not just UK companies that have significant unhedged exposure to
financial market volatility through their pensions schemes. The problem
is widespread and as the report concludes, there is also potential for
much more extreme outcomes.
How Long Can the Politics of Compromise Continue?
Today POLITICO Arena asks:
Are Mitch McConnell’s and John Boehner’s recent statements about not compromising a refreshing bit of candor from top political leaders, rather than the usual platitudes about bipartisanship and working across the aisle?
My response:
Mitch McConnell’s comment about making Obama “a one-term president” and John Boehner’s vow that Republicans will not “compromise on their principles” if they win the majority do indeed challenge “the usual platitudes about bipartisanship and working across the aisle.” But they also reflect a deeper problem that the midterm campaigns have begun to unmask, namely, that decades of compromises have brought us to a state where further compromise is no longer tenable. Look at France. Look at Greece. Look even at England.
I allude, of course, to the “entitlement” schemes that are sinking all western democracies — others more than ours. These are giant Ponzi schemes that would be criminal if undertaken by private parties, because like all such schemes, they’re unsustainable, with late entrants left holding the bag. But unlike their private counterparts, the public versions force us all to play. Yet as the day of reckoning approaches, government has only limited choices: either reduce the promised benefits, or pay for them by taxing or borrowing more or by selling government assets (e.g., western lands), each of which has inherent limits, or by printing money, which is another way of breaking promises — and it ends ultimately in a death spiral. That’s the hard reality. Government isn’t Santa Claus.
So when Obama governs as though he has no grasp of that reality, talk of a one-term presidency is simply coming to grips with reality. And if this election is any indication, Americans appear increasingly to appreciate that. To be sure, there are issues on which to compromise. But for far too long we’ve acted as if every issue were “political,” from retirement security to healthcare to so many other “problems” that in truth are simply the problems of life. Earlier generations solved those problems privately, either by themselves or in voluntary association with others. Indeed, the freedom to do so was what the Constitution was written to secure.
But Progressives disdained that kind of freedom as illusory. They wanted us to solve our problems collectively. The New Deal institutionalized that vision, of course, turning the Constitution on its head. Thus today’s progressives think that nearly every “problem” is a political problem, to be solved collectively – utterly ignoring the evidence of the ages about such collective undertakings. Sarkozy has prevailed for the moment in France, but strikes continue to cripple the economy, and the opposition has promised to make him pay in the next election. One can hope only that American voters will take a different course and that those they elect next Tuesday will have the wisdom to know when and when not to compromise, because this cannot go on forever.
bench craft company scam
Jade Raymond making Splinter Cell 6 <b>News</b> - Page 1 | Eurogamer.net
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Jade Raymond making Splinter Cell 6 <b>News</b> - Page 1 | Eurogamer.net
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Small Business <b>News</b>: Small Biz Bonanza
On this day after Thanksgiving, we thought we'd create a feast of small business resources ourselves. Please dig in and enjoy every tasty morsel. This bonanza.
bench craft company scam
While
October was positive for FTSE 100 UK pension schemes, with the overall
deficit reducing by £11.0bn to £43.5bn, it did little to improve the
risk picture, according to the first issue of PF Risk Report.
The
new publication from PensionsFirst, which provides advanced risk
management and advisory services to the defined-benefit pensions
industry, said that at the end of October, the one-month 95%
value-at-risk figure on an IAS19 basis was £25.4bn.
This
means that in November there was a 1-in-20 chance that the IAS19
deficit could increase by £25.4bn or more - and the expectation that in
one of the next twenty months it will. "The corresponding VAR figure at
September month-end was £26.6bn, so the improved deficit position
changed little from a risk perspective," commented the report.
The
PF Risk Report breaks down pension risk into its key components. On an
uncorrelated basis, interest-rate risk is the largest risk factor,
contributing £17.8bn to the VAR, closely followed by equity risk, which
contributes £15.7bn. The report also focuses on inflation, FX, credit
and property risk exposures, while ignoring longevity, which is a
genuine long-term risk exposure but has negligible volatility in the
short term.
The report illustrates the impact of the key
factors that could cause variation in deficits. For example, a 20%
decrease in equities would increase the aggregate deficit by £34.2bn
and a 1% increase in long-term inflation would increase the deficit by
£60.8bn. The two events combined would increase the deficit by almost
£100bn.
"The simple fact is
that many UK companies (not just those in the FTSE 100) have
significant unhedged exposure to financial market volatility through
their pensions schemes", the report stated.
The report
puts into context the expectation that the monthly accounting deficits
of the FTSE 100's UK pension schemes will move by £25.4bn at least once
in a two-year period by underlining the fact that in August 2010 the
accounting deficits increased by £20.8bn, driven primarily by a 60bp
fall in interest rates. "And it is important to note that while...such
large monthly movements can be reasonably anticipated, there is also
the potential for much more extreme outcomes," the PF Risk Report concluded.
It's
not just UK companies that have significant unhedged exposure to
financial market volatility through their pensions schemes. The problem
is widespread and as the report concludes, there is also potential for
much more extreme outcomes.
How Long Can the Politics of Compromise Continue?
Today POLITICO Arena asks:
Are Mitch McConnell’s and John Boehner’s recent statements about not compromising a refreshing bit of candor from top political leaders, rather than the usual platitudes about bipartisanship and working across the aisle?
My response:
Mitch McConnell’s comment about making Obama “a one-term president” and John Boehner’s vow that Republicans will not “compromise on their principles” if they win the majority do indeed challenge “the usual platitudes about bipartisanship and working across the aisle.” But they also reflect a deeper problem that the midterm campaigns have begun to unmask, namely, that decades of compromises have brought us to a state where further compromise is no longer tenable. Look at France. Look at Greece. Look even at England.
I allude, of course, to the “entitlement” schemes that are sinking all western democracies — others more than ours. These are giant Ponzi schemes that would be criminal if undertaken by private parties, because like all such schemes, they’re unsustainable, with late entrants left holding the bag. But unlike their private counterparts, the public versions force us all to play. Yet as the day of reckoning approaches, government has only limited choices: either reduce the promised benefits, or pay for them by taxing or borrowing more or by selling government assets (e.g., western lands), each of which has inherent limits, or by printing money, which is another way of breaking promises — and it ends ultimately in a death spiral. That’s the hard reality. Government isn’t Santa Claus.
So when Obama governs as though he has no grasp of that reality, talk of a one-term presidency is simply coming to grips with reality. And if this election is any indication, Americans appear increasingly to appreciate that. To be sure, there are issues on which to compromise. But for far too long we’ve acted as if every issue were “political,” from retirement security to healthcare to so many other “problems” that in truth are simply the problems of life. Earlier generations solved those problems privately, either by themselves or in voluntary association with others. Indeed, the freedom to do so was what the Constitution was written to secure.
But Progressives disdained that kind of freedom as illusory. They wanted us to solve our problems collectively. The New Deal institutionalized that vision, of course, turning the Constitution on its head. Thus today’s progressives think that nearly every “problem” is a political problem, to be solved collectively – utterly ignoring the evidence of the ages about such collective undertakings. Sarkozy has prevailed for the moment in France, but strikes continue to cripple the economy, and the opposition has promised to make him pay in the next election. One can hope only that American voters will take a different course and that those they elect next Tuesday will have the wisdom to know when and when not to compromise, because this cannot go on forever.
bench craft company scam
Jade Raymond making Splinter Cell 6 <b>News</b> - Page 1 | Eurogamer.net
Read our news of Jade Raymond making Splinter Cell 6.
No Batmobile in Arkham City <b>News</b> - Page 1 | Eurogamer.net
Read our news of No Batmobile in Arkham City. ... Batman: Arkham Asylum 2 teaser 14 December, 2009. Latest News. Batman: Arkham City details emerge . Batman: Arkham City revealed, dated . Batman domains name Arkham sequel? ...
Small Business <b>News</b>: Small Biz Bonanza
On this day after Thanksgiving, we thought we'd create a feast of small business resources ourselves. Please dig in and enjoy every tasty morsel. This bonanza.
bench craft company scam
Jade Raymond making Splinter Cell 6 <b>News</b> - Page 1 | Eurogamer.net
Read our news of Jade Raymond making Splinter Cell 6.
No Batmobile in Arkham City <b>News</b> - Page 1 | Eurogamer.net
Read our news of No Batmobile in Arkham City. ... Batman: Arkham Asylum 2 teaser 14 December, 2009. Latest News. Batman: Arkham City details emerge . Batman: Arkham City revealed, dated . Batman domains name Arkham sequel? ...
Small Business <b>News</b>: Small Biz Bonanza
On this day after Thanksgiving, we thought we'd create a feast of small business resources ourselves. Please dig in and enjoy every tasty morsel. This bonanza.
bench craft company scam
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