Briefings

US Pension Briefing – October 2024

Discount rates rose sharply, ending a 5-month streak of declines and reducing pension liabilities.
• Major asset classes across the board ended the month with negative returns.
• Depending on liability duration, funded status, and equity exposure pension plans may have seen anywhere from slight decreases in funded status (shorter duration, more fixed income exposure) to increases on the order of magnitude of 0.5% – 2.0% (average duration, more equities, underfunded).

US Pension Briefing September 2024

US Pension Briefing – September 2024

Treasury yields moved lower again in August as the market reacted to Fed Chair, Jerome Powell’s indication that the Fed would begin an easing cycle with an initial rate cut in September.

US Pension Briefing – August 2024

Treasury yields moved lower again in August as the market reacted to Fed Chair, Jerome Powell’s indication that the Fed would begin an easing cycle with an initial rate cut in September.

US Pension Briefing – May 2024

Key takeaways. Discount rates dropped slightly due to market volatility while the Treasury yield curve shifted lower but remained inverted…

US Pension Briefing - April

US Pension Briefing – April 2024

Treasury yields increased significantly during the month of April, raising pension discount rates along with them while credit spreads held steady. With the significant rise in discount rates, we expect pension liabilities will have decreased approximately 3.5% – 6.5% depending on a pension plan’s characteristics.

US Pension Briefing – March 2024

With the slight pull back in interest rates during the month, pension liabilities generally increased anywhere from 0.75% – 1.5% depending on a plan’s cash flow characteristics. Credit spreads continue to be tight, compared to typical levels.

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