Crisis, what crisis? - papers 22 June

That view is based on a survey of 200 firms, including all FTSE 100 final salary schemes. The positive outlook is based on calculations of corporate bond yields – such investments are a key tool used to match scheme assets and liabilities – with Aon stating another 1% increase in yields would be enough to wipe out most companies’ deficits under FRS17 accounting rules. Corporate bond yields have risen 0.75% in the past year to 5.75%, meaning the consultants are looking to a yield of 6.75% to save the day. Half the companies surveyed had a deficit equal to less than 10 months’ worth ...