Corporates forced to prop up ailing DB plans

Since government bond yields are used to discount future liabilities, a reduction in the discount rate from 6 per cent to 4 increases the reported liabilities by 28 per cent.

The Watson Wyatt survey analysed the accounts of 143 of the top 200 listed companies on the ASX. Of these, 54 companies continue to have a DB obligation while the remaining companies provide DC arrangements only.

It did not cover unlisted companies
(including subsidiaries of overseas businesses), or the public sector.

, , , , , , , , , , ,

Leave a Comment

What I took away from the world’s ‘festival of private capital’

The on- and off-stage antics at the extravagant Milken Global Conference in Los Angeles tell us a lot about where institutional capital is right on the money – and where it is putting its head in the sand. And while the event retains the extraordinary intellectual and financial firepower that has always been its signature, something has shifted. The absences are as instructive as what's on the program.

Sort content by