Sub-prime fallout 'to hit DB schemes'

The group cited warnings from the Bank of England’s Credit Conditions survey for Q3 2007, published on September 26. This reported that lending to the corporate sector had been cut back, with corporate credit availability expected to fall further owing to factors affecting the cost and availability of funds to lenders themselves. It said that fees, commissions and interest margins have increased and lenders expect to impose stricter covenants, seek additional security and reduce credit line limits. “This means that many sponsoring employers will be faced with increased costs of fina...