Two months of bond selloff activity, which drove interest rates higher, has resulted in a reduction in benefit obligations for the Milliman 100 Pension Funding Index.
The index, which examines the 100 largest defined benefit pension plans sponsored by U.S. public companies, markedly improved in June, even as the Federal Reserve announced the central bank will continue to wind down its bond-buying program.
The rise in benchmark corporate bond interest rates, used to value pension liabilities, allowed the 100 companies in the index to lower their obligations by $47 billion.
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