Defined benefit (DB) pension schemes could suffer from the credit crunch, warns actuary Lane Clark & Peacock (LC&P).
The warning follows The Bank of England’s credit conditions survey for quarter three which says lending to the corporate sector has dropped. LC&P says the Bank of England expects corporate credit availability to fall further as fees, commissions and interest margins have rise. Lenders also expect to impose stricter covenants, seek additional security and reduce credit line limits. David Poynton, head of credit analysis at Lane Clark & Peacock, says: "This means that many sponsoring employers will be faced with increased costs of financing, as well as lenders looking for additional secur...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes