September 2013 Vol. 18 No. 09
Corporate bonds in institutional investor portfolios
By Lionel Martellini and Vincent Milhau*
Trend accelerated by recent sovereign bond crisis
According to international accounting standards SFAS 87.44 and IAS19.78, which recommend that pension obligations be valued on the basis of a discount rate equal to the market yield on AA bonds, the most straightforward way for pension funds to match liability payments is to build a portfolio of long-dated, investment-grade corporate bonds. In practice, institutional investors
Log in below or
buy a subscription
to enjoy unlimited access to www.asiaasset.com's quickly growing 7,000 article database.