This bulletin recaps the second quarter earnings season and discusses the outlook for earnings for the rest of 2016.
The U.S. economy should slow but not stall in 2019 due to fading fiscal stimulus, higher interest rates and a lack of workers. Even as unemployment falls further, inflation should be relatively contained.
Due to growth assets and interest rates, funded status rose 1.5% this month from 85.4% to 86.9%.
Due to hedge portfolios and growth assets, funded status fell .4% this month from 88.5% to 88.1%.
Due to a 30 bps decrease in discount rates, funded status fell 1.3% this month from 90.4% to 89.1%
A breakdown of what you need to watch this month as you consider investment implications for your pension plan.
PG&E (ticker: PCG) filed for bankruptcy - surprisingly the issuer was within the A or better rated pension liability discount rate universe within the prior 12 months.
Due to a decrease in rates, funded status fell 2.7% this month from 88.1% to 85.4%.
This month marks the largest monthly funded status decrease since January 2016.
November marked the 10 year anniversary of the widest corporate bond spreads on record.