Tag: pension finance
Due to popular demand and the notion that, in the right hands, they might be useful, we have updated our work on pension obligation bonds (POBs). The early versions of these bonds offered a simple tax arbitrage. The plan sponsor would issue a bond at a tax-exempt (low) rate and invest in higher yielding taxab…
Our 2013 update on the funded status of state and local pension plans made me think more broadly about the progress of these plans. My thoughts fell into three buckets: good news, worrisome things, and some issues up in the air. As background, state and local plan funded levels held steady at 72 percent from…