Key Takeaways
- We project 2022 pension obligation bond issuances will decrease 60% year over year.
- Persistently higher interest rates are a driving factor as perceived profit opportunities fade.
Continued pension obligation bond issuance is primarily due to issuers’ desire to control contribution volatility and escalation. - Recent issuances face a steep climb to recover because fiscal 2022 market returns fell far short of expectations, and this could lead to pension contribution increases and pressured budgets.
10 Oct, 2022