February 18, 2020
Negative-Rate Concerns Spreading to Pension Funds
US MNCs with European pension funds are being forced to contend with negative rates in Europe. Although the likelihood of negative interest rates in the US still seems remote, in Europe they’ve been a reality for several years, and pension funds are now grappling with what that means. In a recent NeuGroup meeting, the head of pension investments at a multinational corporation (MNC) with several European funds noted that for the first time the company will have to use negative interest rates to value liabilities, specifically…
