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

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Link with qualifications page.)
 
imported>Doug Williamson
m (Organisation check 6/5/13 - no change)
 
Line 1: Line 1:
(IRP).
(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 theory describes the expected relationship between [[Spot rate|spot]] and [[Forward forward rate|forward forward exchange rates]], and the [[Interest rate|interest rates]] in the related currency pair.
The PBGC has wide powers to investigate US pension schemes and their sponsoring companies.
 
Under efficient market conditions the interest rate parity theory predicts that the forward FX rate (available in the market today) should be equal to the spot FX rate, adjusted for the difference in interest rates between the currency pair over the relevant period.


The equivalent in the UK is the Pension Protection Fund.


== See also ==
== See also ==
* [[CertFMM]]
* [[Pension Protection Fund]]
* [[Covered interest arbitrage]]
* [[Efficient market hypothesis]]
* [[Foreign exchange]]
* [[Forward forward rate]]
* [[Four way equivalence model]]
* [[Interest rate]]
* [[Spot rate]]
 
[[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

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Interest_rate_parity&oldid=37079’