Stoneport’s head of covenant, Jacqui Woodward, explains why the UK’s defined benefit sector could suddenly experience an increase in consolidation, similar to that experienced in other countries such as Australia, the Netherlands and Germany.
Carillion is a covenant warning
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November 27, 2017
From the blog: The Pensions Regulator’s assertion that “the strength of the employer covenant can change materially over a short period of time” has once again been proved correct by the case of Carillion.
The company’s share price tumbled 47 per cent earlier this month, following similar falls in July.
During this turbulent time the trustees of Carillion’s five main UK defined benefit schemes have been working on the triennial valuations due as at December 31 2016.
Raising debt to fund pensions - what to bear in mind
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April 3, 2017
From the blog: FTSE engineering company GKN might consider issuing bonds of up to £250m in order to help finance its UK pension deficit, it has recently been reported in the Times.
If the company were to fund the schemes’ deficits via the issue of bonds, it would be swapping one form of debt for another.