Political economy Archives - Page 7 of 28 - Pension Policy International

29SepSeptember 29, 2022

BoE’s £65bn move driven by pension fund panic

The Bank of England stepped in to calm markets after some types of pension funds were at risk of collapse. It pledged to buy £65bn of government bonds after Friday's mini-budget sparked turmoil on financial markets and the pound plunged. Investors had demanded a much higher return for investing in government bonds, causing some to halve in value. Pension funds, which invest in bonds, were forced to start selling, sparking fears of a fresh market downturn. The Bank said its decision to buy...

September 29, 2022

NewsPension Management, Political economy, UK

28SepSeptember 28, 2022

UK pensions hit with £100m margin calls as gilts and sterling slide

At least three LDI managers request emergency capital as others consider unwinds to avoid default. UK pension funds have been hit with variation margin calls of as much as £100 million ($107 million) each, after sharp falls in gilts and sterling pushed mark-to-market valuations on derivatives and leveraged repo positions heavily against them. Simeon Willis, chief investment officer of consultancy XPS Pensions Group, says he knows of three different fund managers running pooled pension portfolios that have requested emergency capital...

September 28, 2022

NewsInvestment, Political economy, UK

22SepSeptember 22, 2022

US. Fed hikes interest rates 75 basis points; now targets year-end funds rate of 4.4%

The Federal Reserve on Friday agreed to a request from Treasury Secretary Steven Mnuchin to return unused funds from emergency lending programs. The Federal Reserve hiked interest rates by 75 basis points for the third consecutive meeting on Wednesday, boosting the target range for the federal funds rate to a range of 3% to 3.25%, in a continuing bid to tamp down inflation. The Federal Open Market Committee, which concluded its two-day meeting on Wednesday, had previously increased rates by 75...

September 22, 2022

NewsPolitical economy, US

20SepSeptember 20, 2022

Pensions, with inflation soaring, 2022 will be the worst year to retire

What impact will inflation have on pensions? An answer comes from the tenth edition of Natixis IM’s Global Retirement (GRI) Index 2022. Analysis suggests that 2022 may be the hardest year to retire in recent history. This is due to a market environment that affects retirement savings. In practice, the high inflation rate will erode part of the capital set aside but the volatility on the markets as well as the low interest rates also weigh. These are the...

September 20, 2022

NewsPension design, Political economy, savings

06SepSeptember 6, 2022

Ghana. Pensions industry loses US$800 million in 2 years to weakening cedi

The Executive Secretary said although the cedi value of assets under management (AUM) has increased, the dollar value of those assets has fallen. Detailing the situation in an interview with the B&FT, Mr. Esso said: “The effect of the [local] currency’s depreciation has affected the assets under management in the pensions industry. In 2020 the industry in cedi terms was about GH¢22billion, and when you juxtapose that with the dollar there was about US$3.8billion. “Currently, we are looking at an estimate...

September 6, 2022

NewsGhana, Political economy

23AugAugust 23, 2022

Australia’s Pensions Suffer Worst Year Since Financial Crisis

Australia’s pensions posted their worst annual performance since the global financial crisis as markets were roiled by central banks’ aggressive rate hikes and the war in Ukraine. Read also Should Pension Funds ‘Invest’ in Crypto? Guardians of the world’s fifth largest pension pot shed A$92.8 billion ($64 billion) on investments in the fiscal year through June 30, the biggest loss for the period since 2009, according to Australian Prudential Regulation Authority data released Tuesday. That saw the pool of savings fall...

August 23, 2022

News2022, Australia, Investment, Political economy

16AugAugust 16, 2022

Tough Times Ahead Warns CEO of Australia’s Largest Pension Fund

Consumers and businesses will continue to struggle as global policy makers battle to get inflation under control, the head of Australia’s largest pension fund told a media forum. “Our view is that there are some pretty tough times ahead,” Paul Schroder, chief executive officer of the A$260 billion ($182 billion) AustralianSuper Pty, said on Tuesday. “We think we are in a continually tight environment. The question now is what is the rate of that tightening and is there a pivot around...

August 16, 2022

News2022, Australia, Pension Management, Political economy

28JulJuly 28, 2022

In a Highly Indebted Economy: Security Issues for the Asset-based China’s Reform and the Financial System

By Tianyong Zhou Since the start of the 21st century, all major global economies have been experiencing a shift to a model of low consumption, low interest rate, low inflation, low growth and high debt. China is no exception. This article argues that in the high-indebtedness economic model, the proportion of committed and guaranteed debt service credit is decreasing, while the proportion of asset-backed credit corresponding to debt is on the rise; and with respect to currency stability, the role...

July 28, 2022

Articles, System Characterization2022, China, Political economy, Public Pensions

28JulJuly 28, 2022

South Korea pension fund says it is not driving won down

South Korea's national pension service, manageing the world's third-largest pension fund, said on Thursday its rising overseas investment was not a main driver of the won's recent weakening. "The fund is applying a strategic FX hedging strategy when the foreign exchange rate stands above a certain level," the National Pension Service said in a statement while responding to local media reports blaming it for the won's fall. Read more @Channel News Asia 546 views

July 28, 2022

News2022, Pension Management, Political economy, South Korea

21JulJuly 21, 2022

South Korea huge pension fund a local force driving won lower

South Korea's strenuous attempts to defend a sharply weakening currency have run into an unstoppable home-made force working in the opposite direction: the national pension fund. The National Pension Service (NPS), the world's third-largest such fund, has a hefty and growing appetite for equity and bond investment abroad, which it can feed only by selling won for foreign currency. It made net purchases of about $10 billion of foreign bonds and stocks in the first five months of 2022, central bank...

July 21, 2022

News2022, Pension Management, Political economy, South Korea

September 2022

BoE’s £65bn move driven by pension fund panic

UK pensions hit with £100m margin calls as gilts and sterling slide

US. Fed hikes interest rates 75 basis points; now targets year-end funds rate of 4.4%

Pensions, with inflation soaring, 2022 will be the worst year to retire

Ghana. Pensions industry loses US$800 million in 2 years to weakening cedi

August 2022

Australia’s Pensions Suffer Worst Year Since Financial Crisis

Tough Times Ahead Warns CEO of Australia’s Largest Pension Fund

July 2022

In a Highly Indebted Economy: Security Issues for the Asset-based China’s Reform and the Financial System

South Korea pension fund says it is not driving won down

South Korea huge pension fund a local force driving won lower