Interest rate guarantee and Pension Benefit Guaranty Corporation: Difference between pages

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(IRG).  
(PBGC). ''US Pensions''. 
An organisation set up by the US government to take over the assets and liabilities of insolvent pension funds and to provide limited guarantees as to the payment of pensions by those funds. 


This is an option on a specified short-term interest rate for a specified notional loan or deposit.
The PBGC has wide powers to investigate US pension schemes and their sponsoring companies.   
   
A borrower normally wants a guarantee that their hedged rate payable will be 'no higher than' a specified worst case rate.
 
A lender or investor normally wants a guarantee that their hedged rate receivable will be 'no less than' a specified worst case rate.


The equivalent in the UK is the Pension Protection Fund.


== See also ==
== See also ==
* [[Hedging]]
* [[Pension Protection Fund]]
* [[Interest rate]]
* [[Interest rate option]]
* [[Option]]
 
[[Category:Manage_risks]]

Revision as of 13:57, 6 May 2013

(PBGC). US Pensions. An organisation set up by the US government to take over the assets and liabilities of insolvent pension funds and to provide limited guarantees as to the payment of pensions by those funds.

The PBGC has wide powers to investigate US pension schemes and their sponsoring companies.

The equivalent in the UK is the Pension Protection Fund.

See also