OECD calls for vigilance on ‘search for yield’, lenience on solvency

first_imgInternational regulators must monitor pension funds in their ‘search for yield’ as they try to secure benefit promises by investing in increasingly risky assets, the Organisation for Economic Co-operation and Development (OECD) has warned.The Paris-based think tank published a paper looking at whether pension funds and insurance companies would be able to maintain promises made in higher-interest-rate times, given the current low-yield environment.In a stark warning, it said regulators should be more lenient on forcing solvency requirements in times of market stress while ensuring pension funds were not taking excessive investment risks that could lead to insolvency.It said there was a serious concern for the financial longevity of pension funds should they become embroiled in an “excessive search for yield” to cover promises made when interest rates were higher. In its Business and Finance Outlook 2015 report, the OECD said pension funds, by increasing the risk profiles, could be “seriously compromising their solvency situation” if a financial shock such as a liquidity freeze took place.Its data showed that, while the overall investment in alternatives had increased, this could be down to overall larger portfolios, with the exception of the UK.The OECD’s UK data showed pension funds clearly engaging in the search for yield, with an upward trend in private equity and structured products.Given the prolonged effect of low interest rates on pension funds, the OECD highlighted duration-matching assets, renegotiating promises, increasing contributions and easing regulation as solutions to alleviate concerns.It echoed calls for regulatory requirements to fund solvency shortfalls to be counter-cyclical, meaning additional funding should be made when pension fund liabilities are not being exacerbated by falling rates.The OECD’s call for leniency in solvency, and focus on investment risk, goes against the rhetoric seen from Europe’s government and regulators.Solvency requirements were discussed under the previous European Commission, while work on a risk-focused solvency framework – which may require additional funding in riskier times – is being worked on by the European Insurance and Occupational Pensions Authority (EIOPA).The OECD said: “The outlook is troubling for pension funds, as solvency positions will deteriorate unless they actively adopt risk-management strategies.“However, the lack of good quality, very long-term financial assets in sufficient quantities poses serious problems to these risk-management strategies.”It said pension funds should look to close the duration gap between assets and liabilities, while policymakers should avoid excessive pressure on pension funds to correct solvency in times of weak markets.“The regulatory framework and policymakers have an important role to play in [ensuring pension funds do not take excessive risk] and need to remain vigilant to prevent excessive ‘search for yield’,” it added.However, Charles Cowling, director at UK consultancy JLT, sounded a note of caution on the OECD’s proposals.He said: “If [regulators] responded to concerns from the OECD on the poor level of funding of pension schemes and increased pressure on employers to take less risk and fund their pension schemes better, this could force some of the weaker employers into bankruptcy and put downward pressure on equity prices and make matters worse – as deficits widen as a result.”last_img read more


Wayne Rooney unveiled by DC United after signing £15m contract

first_img 5 targets Man United joined by three other clubs in race for Erling Haaland Latest transfer gossip on talkSPORT.com RANKED REVEALED Top nine Premier League free transfers of the decade IN DEMAND 5 moving on targets Tony Cascarino backs Everton to sign two strikers for Carlo Ancelotti Rooney speaks the media at his DC United unveiling Wayne Rooney was officially unveiled by new club DC United on Monday, where the former England captain insisted he had not moved to Major League Soccer to wind down his career. Rooney had once harboured hopes of still featuring for England at this World Cup in Russia, before he fell out of Gareth Southgate’s plans.And the former Three Lions skipper captain dismissed certain questions as “unfair” when he was asked if he would be disappointed if England became world champions after the end of his international career – having once been the country’s young bright spark.He then said of his departure from Everton: “I was grateful and delighted to go back there last summer. But I’ve made the decision to come here.“I’m sure there’s a lot of questions about why I left Everton and I’m sure the people who want to know can ask Everton and let them answer it. Kevin De Bruyne ‘loves Man City and wants to keep winning’, reveals father The Mayor of the District of Columbia, Muriel Bowser, presents the striker with a proclamation for ‘Wayne Rooney Day’ center_img 5 Arsenal transfer news LIVE: Ndidi bid, targets named, Ozil is ‘skiving little git’ The 32-year-old former Everton and Manchester United striker has signed a three-and-a-half-year contract worth a reported £15million to conclude a decorated career in England, but has joined a struggling team widely considered the worst in the MLS.His decision to up sticks to the States came after his role at Everton became uncertain only a year after returning to his boyhood club.But Rooney insists he is still hungry for success and is determined to deliver the goods in a DC United shirt, as the club begin a new era with a new landmark signing and a brand new stadium.“I’m not here to see out the last few years of my career, I’m here to compete, I’m here to win and that’s the way I’ve always played and will always play,” he said at his official club unveiling in Washington DC. 5 Rooney with DC United CEO Jason Levien, and General Manager Dave Kasper LATEST 5 Where every Premier League club needs to strengthen in January Wayne Rooney will earn around £15m at DC United “I made the decision to come here and I’m delighted to be here – I’m just looking forward to (my) first game.“I’m sure there’s more players going to come in. We want to keep trying to build the team. It’s been a tough few years for the club but it’s moving in the right direction.“We have to improve if we want to be successful again. With the new stadium coming, the training ground – to move forward we’ll need to bring new players in and I’m sure they’re looking at that.” LIVING THE DREAM Cavani ‘agrees’ to join new club and will complete free transfer next summer Rooney was greeted by hundreds of fans when he arrived at his new club The biggest market value losers in 2019, including Bale and ex-Liverpool star “Even on the training pitch yesterday, there were a few of the academy players and I had a go at them for not running as hard as they should have. That’s on my first day.“I’ve always set high targets. I demand a lot of myself and expect that from team-mates as well. I have to adapt to however the club is run, and embrace it.“The club has got great history. It’s been tough over the past few years and the club doesn’t need to look back at that history, it needs to create more history.“We have to improve, but there’s talent in the team; maybe (with) some guidance on and off the pitch.“It’s a new challenge, new culture, new league to play in, so I’m excited. I can’t wait to get started.”last_img read more


DONEGAL DEATH NOTICES FOR WEDNESDAY, APRIL 25, 2012

first_imgPEGGY LAVERTYThe sudden death has occurred at her home of Peggy Laverty, The Bower, Killygordon. Funeral from there on Friday afternoon at 2pm for Requiem Mass at 2.30pm in St. Patrick’s Church, Crossroads, followed by interment in the adjoing cemetery. Family flowers only. Family time from 10pm until 11am and on the day of the funeral.Loving mother of Pat, John, Martin, Mary and Sally. Sadly missed by her sons, daughters, sons-in-law, daughters-in-law, granchildren, relatives and friends. Further information from G McCool & Son, Funeral Director, Ballybofey, 0749131016. MAY DOHERTYThe death has taken place at her home of May Doherty, nee Anderson, Dooish, Ballybofey. Funeral from her home on Friday at 10.15am for Requiem Mass in St Mary’s Church, Stranorlar at 11am. Interment afterwards in Drumboe Cemetery. Family flowers only please, donations in lieu if desired to the Alzheimer’s Association of Ireland or the Donegal Hospice – c/o any family member. Family time from 11pm to 10am.Sadly missed by her sons Paul and Jim daughters Martina, Patricia, Bernadette and Olivia, brother Eamon, sisters Isa, Kay, Pearl and Phyliss, sons-in-law, daughters-in-law, sisters-in-law, brothers-in- law, grandchildren, relatives and friends. Further information from G McCool & Son, Funeral Director, Ballybofey, 0749131016.DONEGAL DEATH NOTICES FOR WEDNESDAY, APRIL 25, 2012 was last modified: April 26th, 2012 by BrendaShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window) Tags:2012APRIL 25DONEGAL DEATH NOTICES FOR WEDNESDAYlast_img read more