The difficulty of institutions that need cash for payment have grown acute during the chalk-brained professors’ zero-interest-rate pogrom. Insurance companies are one victim, pension plans another. Looking specifically at defined-benefit pension plans, the plan sponsor (corporation, maybe, or municipality) is obligated to pay current and future retirees a specific dollar amount from now until a spouses’ death.
http://blogs.wsj.com/marketbeat/2011/10/21/cashin-the-markets-having-a-
flying-horse-moment/
Cashin: The Market’s Having a Flying-Horse Moment
