30.04.2020 - Studies
After the pension burdens had risen steadily in recent years, the capital market turbulence in the wake of the corona crisis should provide significant relief.
The pension liabilities of large German companies reached new record levels at the end of the 2019 financial year. The DAX-30 companies reported pension liabilities totaling 415 billion euros. The pension deficits have reached their previous highs from 2016 and now stand at EUR 138 billion. However, the deficits are likely to have narrowed in the first quarter of 2020. What initially sounds paradoxical in view of the capital market turbulence is a result of the valuation logic. Large corporations are benefiting from rising bond market yields and the fact that the funding ratio of their plans is only about two-thirds.
This study is available in German only.
08.08.2019 - Companies
by Kai LehmannPension burdens of the DAX groups are likely to have climbed to a record high of over 400 billion euros in the first half of the year. Erosive interest rates have caused pension agreements to swell massively.
16.05.2019 - Companies
by Kai LehmannThe debt burden that many DAX companies are weighing on due to their pension promises remains high. As this article shows, the financial strength of some corporations is likely to suffer for many years from the pension deficits to be closed.
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