A breakdown of what you need to watch this month as you consider investment implications for your pension plan.
Potential impact on U.S. pension funded status of 10-year Treasury yields going to 0%
Due to hedge portfolios and growth assets, funded status fell .4% this month from 88.5% to 88.1%.
Due to hedge portfolios and growth assets, funded status rose 1% this month from 87.5% to 88.5%.
Due to interest rates and growth assets, funded status fell 3.5% this month from 91% to 87.5%.
Due to a 30 bps decrease in discount rates, funded status fell 1.3% this month from 90.4% to 89.1%
November marked the 10 year anniversary of the widest corporate bond spreads on record.
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.
This month marks the largest monthly funded status decrease since January 2016.
Political uncertainty has led to low expectations that policy initiatives would see much progress before year-end.