Pension liabilities and Sovereign risk: Difference between pages

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In relation to a defined benefit pension scheme pension liabilities are the expected future amounts of pensions, other benefits and related costs payable by the scheme.
Importantly, it indicates the maximum creditworthiness of a counterparty – no organisation can be more creditworthy than its home country’s central bank.
 
Sovereign risk also includes concepts such as expropriation, war and civil unrest.




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The total present value of these expected future cash outflows from the pension scheme.
The risk of losses arising from default on sovereign debt.




== See also ==
== See also ==
* [[Defined benefit pension scheme]]
* [[Credit risk]]
* [[Longevity]]
* [[Sovereign debt]]
* [[Pension assets]]
* [[Pension buyout]]
* [[Pension scheme]]
* [[Provision]]


[[Category:Manage_risks]]
[[Category:Financial_risk_management]]

Revision as of 12:29, 11 May 2016

1.

Importantly, it indicates the maximum creditworthiness of a counterparty – no organisation can be more creditworthy than its home country’s central bank.

Sovereign risk also includes concepts such as expropriation, war and civil unrest.


2.

The risk of losses arising from default on sovereign debt.


See also