A major concern for many plan sponsors is the lack of improvement in funded status in recent years. What is causing their funded status to barely move? And can plan sponsors do anything to remediate this headwind?
The general rule of thumb when considering the relative value of a bond is that “wide” equals “cheap”. While this approach is relatively useful in a static mid-cycle environment, it breaks down in a changing world — such as when cyclical or secular forces are reshaping an industry or when a credit cycle is turning.