CHANGING THE LANDSCAPE

摘要

Many companies continue to face large deficits in their defined benefit (DB) pension schemes and consequential increased cash demands from the trustees of these schemes. This has been exacerbated by recent falls in gilt yields, driven by economic uncertainty and the Bank of England's quantitative easing programme. As a result, companies are looking for alternative solutions to fund their pension obligations. Over recent years, there has been an increase in both the popularity and application of asset-backed funding structures, also known as asset-backed contributions (ABCs), to address pension scheme deficits. Since 2010, more than 20 asset-backed funding structures have been publicly reported with an aggregate value of over ￡3bn.