This paper examines the role of guarantees in DC pension plans, in particular minimum investment return guarantees during the accumulation phase. The main goal is to assess the cost and benefits of different return guarantees. The report uses a stochastic financial market model where guarantee claims are calculated as a financial derivative in a financial market framework (like e.g. the valuation of a put option). In this context, the
The paper argues that judgements play an important role in determining appropriate trade-offs when making issuance choices. The result of the determination of cost and risk factors and judgements about trade-offs is usually a relatively balanced issuance split across the maturity spectrum, along both the nominal and real yield curves.
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Financial policy reforms urgently need to address containing the huge risks taken by the SIFIs that encompass the global derivatives business. This paper analyses the global derivatives business and makes recommendations for policy reforms that encourage financial stability.
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This article underlines the need for long-term investors to finance growth and the need to create instruments better suited to their needs, particularly in the context of the recent regulatory changes.
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This article discusses selected issues regarding the impact of protracted periods of low interest rates on pension funds and insurance companies.
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Infrastructure investments could be the “perfect match” for a portion of pension savings. This article contends that link between the capital at hand and its accessibility for infrastructure investments needs to be improved.
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This article explains the European Investment Bank Group’s role in creating a better environment for financing business, innovation and green growth and provides examples of ways that the financing of innovation can be improved against the backdrop of a flexible, business-oriented EU framework.<
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The OECD Statistical Yearbook on African Central Government Debt provides comprehensive quantitative information on African central government debt instruments, including both marketable and non-marketable debt.
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Although securitisation issuance has slumped in recent years with both the US and European markets having become increasingly dependent on central bank and government support, the securisation market is expected to recover over a long term horizon.
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Mobilising private sector funding is essential in bridging the infrastructure funding gap. Stable and accessible programmes of infrastructure projects and public-private partnerships (PPPs) are key in attracting private sector investors, complemented by adequate regulation.