- Additional Authors
- Found In
- OECD Journal: Financial Market Trends Vol. 2011, no. 1, p. 237-256 1995-2872
- Description
- 20 p.
- Summary
- A period of protracted low interest rates is a feasible, even if not the most likely, scenario going forward and such a scenario would adversely affect pension funds and insurance companies. Protracted low interest rates affect investment opportunities and have a potentially significant adverse effect on life insurance companies and institutions whose liabilities consist of a fixed investment return or benefit promises, such as is the case for defined-benefit pension funds. It cannot be ruled out that the financial institutions affected engage in "gambling for redemption" in an attempt to match the level of return promised to beneficiaries when financial markets were more elevated.
- Subject
- Finance and Investment
- LCCN
- 10.1787/fmt-2011-5kg55qw0m56l
- OCLC
- oecd-lib-002197
- Author
Antolin, Pablo.
- Title
The Economic Impact of Protracted Low Interest Rates on Pension Funds and Insurance Companies [electronic resource] / Pablo Antolin, Sebastian Schich and Juan Yermo
- Imprint
Paris : OECD Publishing, 2011.
- Connect to:
- Indexed Term
Finance and Investment
- Added Author
Schich, Sebastian.
Yermo, Juan.
- Found In:
OECD Journal: Financial Market Trends Vol. 2011, no. 1, p. 237-256 2011:1<237 1995-2872
- Other Standard Identifier
10.1787/fmt-2011-5kg55qw0m56l doi