Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of Recent Trends in Financial Markets Abstract: Background; Equity markets; Bond markets and interest rates; Foreign exchange markets; Emerging economies; Enlargement of the European Union... Journal: Financial Market Trends Year: 2004 Pages: 7-60 Volume: 2004 Issue: 1 Handle: RePEc:oec:dafkab:5LMQCR2JF26F Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The Performance of Financial Groups in the Recent Difficult Environment Abstract: The past few years were characterised by an economic downturn, a substantial stock market correction from March 2000 to March 2003, financial asset deterioration, record corporate default rates, the Argentina sovereign default and several natural and man-made catastrophes, including most notably the September 11 attacks. Against this background, the present note looks at the performance of financial groups during this period. The recent decade has seen the formation of an increasing number of such groups, although some have argued that, ex post, the benefits associated with the formation of such groups may have been smaller than initially thought. The note concludes that financial groups have been quite resilient in the face of these various shocks, which is reflected in their equity market valuations... Journal: Financial Market Trends Year: 2004 Pages: 61-81 Volume: 2004 Issue: 1 Handle: RePEc:oec:dafkab:5LMQCR2JF25B Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Ageing and Financial Markets Abstract: Over the next decades, OECD countries will experience a significant ageing of their populations. Changes in the age structure of populations affect the economy’s saving behaviour, including the level of saving and the choices of saving vehicles. During the 1990s, financial markets in general and equity markets in particular may have benefited from large inflows into pension funds and other institutionalised forms of saving. These inflows reflected to a considerable extent saving for retirement by baby boom generations. These baby boom generations are expected to start to move into retirement after 2010. Almost as a natural corollary to the developments during the 1990s, some observers have argued that when baby boomers start entering retirement they will become net sellers of financial assets to finance retirement consumption... Journal: Financial Market Trends Year: 2004 Pages: 85-120 Volume: 2004 Issue: 1 Handle: RePEc:oec:dafkab:5LMQCR2JF248 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: A Note on Benefit Security Abstract: A reoccurring motif in pension literature and policy is the search for “benefit security” – that is, assurance to members of a pension regime that, at the end of the working career, they will get some reasonably predictable outcome, either as a pension (benefit stream) or a lump sum. The purpose of this note is to present a simple “thought experiment” to explore this matter and how market mechanisms might be brought more to bear... Journal: Financial Market Trends Year: 2004 Pages: 133-198 Volume: 2004 Issue: 1 Handle: RePEc:oec:dafkab:5LMQCR2JF223 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Insurance and Financial Market Issues Related to the Management of Large-Scale Disaster Abstract: The last few years have witnessed a number of large-scale disasters, both man-made, such as the terrorist attacks of 11 September 2001, and natural, such as the tropical storm Allison in 2001 in the US, the extensive flooding in large parts of Europe in summer 2002, the May 2003 earthquake in Algeria or the appearance of previously unknown infectious diseases. Both the frequency of such disasters and the magnitude of losses involved have tended to increase. This evolution brought home to OECD governments the realisation that risks of very large disasters or “mega-risks” have the potential for inflicting considerable damage on the vital systems and infrastructures upon which our societies and economies depend... Journal: Financial Market Trends Year: 2004 Pages: 201-211 Volume: 2004 Issue: 1 Handle: RePEc:oec:dafkab:5LMQCR2JF20Q Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: OECD Financial Outreach Activities in 2003 Abstract: Following the end of the “Cold War”, the OECD has, since the early 1990s, been conducting “Outreach” activities (i.e. cooperation including technical assistance activities with non-Member economies), first with the Central and Eastern European countries in transition and now extending to many economies especially in Asia... Journal: Financial Market Trends Year: 2004 Pages: 201-211 Volume: 2004 Issue: 1 Handle: RePEc:oec:dafkab:5LMQCR2JF1ZN Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Global Pension Statistics Project: Measuring the Size of Private Pensions with an International Perspective Abstract: The scale and pace of pension reform worldwide has created a significant need for the development of comprehensive, comparable pension statistics that can capture the many dimensions of pension systems and assist governments in assessing their programmes and reforms. Indeed, there are presently only scattered bodies of data available on subjects such as retirement income adequacy and trends in coverage, funding and investment. In order to fill this significant data gap in pension statistics, in 2002 the OECD Financial Markets Division (within the Directorate for Financial and Enterprises Affairs), initiated a statistical project with the aim to set up an analytical database ... Journal: Financial Market Trends Year: 2004 Pages: 229-239 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FNM4LZN Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: OECD's Financial Education Project Abstract: Financial education has always been important for consumers in helping them budget and manage their income, save and invest efficiently, and avoid becoming victims of fraud. But the importance of financial education has increased in recent years as a result of both financial market developments and demographic, economic and policy changes. Capital markets are becoming more sophisticated and new products are continuously offered, including hybrid instruments whose risk-return characteristics are not immediately discernible. Consumers now have greater access to a variety of credit and savings instruments provided by a range of entities from on-line banks and brokerage firms to community based groups offering counselling and financing aid to low and moderate-income families. They can now use automated teller machines (ATMs) and personal computers to handle ... Journal: Financial Market Trends Year: 2004 Pages: 221-228 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FNNSNVJ Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Guidelines for the Protection of Rights of Members and Beneficiaries in Occupational Pension Plans Abstract: A central element of the programme of work of the OECD’s Working Party on Private Pensions has been the development of principles of regulation and supervision and guidelines related to the maintenance and oversight of private pension plans and funds. This work has been done in conjunction with the International Network of Pension Regulators and Supervisors (INPRS). The guidelines set forth below specifically address the rights of pension plan members and beneficiaries, an especially vital aspect of any pension programme. The Working Party previously developed and issued in 2000 broad principles applicable to private occupational pensions, titled “Fifteen Principles for the Regulation of Private Occupational Pensions Schemes”1, which were also approved by the INPRS. In 2002 the Working Party issued “Guidelines for Pension Fund Governance.”2 The document, ... Journal: Financial Market Trends Year: 2004 Pages: 199-219 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FNR65HB Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Private Health Insurance in OECD Countries: The Benefits and Costs for Individuals and Health Systems Abstract: Governments often look to private health insurance (PHI) as a possible means of addressing some health system challenges. For example, they may consider enhancing its role as an alternative source of health financing and a way to increase system capacity, or promoting it as a tool to further additional health policy goals, such as enhanced individual responsibility. Yet private health insurance is a complex financing mechanism that affects and interacts with public systems in multiple ways. This is why, when assessing the current and potential role for private health insurance, policy makers need to consider the intricate interactions arising between public and private coverage, and the effects that PHI has upon ... Journal: Financial Market Trends Year: 2004 Pages: 125-197 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FNTKW21 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: International Risk Transfer and Financing Solutions for Catastrophe Exposures Abstract: In dealing with extreme economic exposures we normally distinguish between natural catastrophes and man-made disasters. Natural catastrophes refer to abrupt events caused by natural hazards, such as windstorm, flood, drought, earthquake, landslides, avalanches, wildfires, etc., that inflict significant economic and human devastation throughout a geographical region. Man-made disasters, in turn, can be categorised as unintended events, caused by accidents, failures, crashes, explosions, fire, etc., and willful events, often referred to as civil unrest and terrorist acts. Until recently, willful events and specifically terrorist acts constituted a relatively modest share of the total catastrophe losses but suddenly turned into a sizeable loss potential with the terrorist attack on the World Trade Center in 2001, ... Journal: Financial Market Trends Year: 2004 Pages: 91-121 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FNWSFD2 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Convergence in the Financial Sector: Where Are We Coming from and Where Are We Going? Abstract: There is an increasing overlap with, and stronger inter-linkages among, banks, capital markets, insurance companies, and other financial institutions such as hedge funds, resulting in a steady blurring of sectoral and product boundaries. Looking ahead, the pace of overall financial sector convergence is unlikely to slowdown so that the future financial landscape will be characterised by ever stronger interdependences and inter-linkages among financial institutions. Increased interdependence and inter-linkages have led to growing convergence among institutions and products in the OECD area. These developments have led to important new challenges for market participants, ... Journal: Financial Market Trends Year: 2004 Pages: 61-87 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FP08L21 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of Recent Trends in Financial Markets Abstract: Financial markets have shown resilience in an environment of marked increases in oil and commodity prices and somewhat diminished expectations about the strength of the economic recovery. Major stock markets, which had risen over most of the first quarter, showed some weakening at the end of March, and again in late May and in mid-August, losing part of the gains they had made since the end of the downturn in the first half of 2003. Since then, however, equity markets have risen moderately or at least held steady and bond markets have absorbed, better than had been feared ... Journal: Financial Market Trends Year: 2004 Pages: 7-58 Volume: 2004 Issue: 2 Handle: RePEc:oec:dafkab:5LMM3FP2Q5JB Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of Recent Trends in Financial Markets Abstract: Over the past few months, major equity markets generally have continued their upward trend, while interest rates at the long end of the maturity spectrum have declined. Meanwhile, credit spreads for both investment grade and sub-investment grade borrowers continue to be compressed and volatility appears to have diminished in most market segments. Journal: Financial Market Trends Year: 2005 Pages: 7-65 Volume: 2005 Issue: 1 Handle: RePEc:oec:dafkab:5LGMKTVFDV9T Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Corporate Pension Fund Liabilities and Funding Gaps Abstract: The fixed nature of pension benefits under corporate defined benefit (DB) pension plans imply that plan sponsors face financial and potentially biometric risks. A large number of OECD countries have such DB pension schemes, whereby employees receive a specific payment upon retirement and for which sponsoring employers are responsible to some extent for meeting any shortfall in pension funding relative to liabilities, although, across countries, these schemes vary in importance. Recent financial market developments, including in particular the post-2000 equity market correction and declining interest rates have illustrated the vulnerability of DB plan sponsor companies to financial risks. While it is difficult to form a judgement about the exact magnitude of the funding gaps that have arisen, estimates of such gaps were considered to be of sufficiently large scale to raise concern amongst policymakers. Policy responses run the gamut from relief measures intended to lessen temporarily the financial pressures on sponsoring... Journal: Financial Market Trends Year: 2005 Pages: 69-113 Volume: 2005 Issue: 1 Handle: RePEc:oec:dafkab:5LGMKTVD07TG Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Overview of Advances in Risk Management of Government Debt Abstract: Modern risk management has become an important tool for achieving strategic debt targets in the OECD area. In essence, risk management policies, based on the use of formal methods, are now an integral part of debt management in most OECD jurisdictions. In general, risk management tolerances and policies are approved (and often set) by the Ministry of Finance (or other appropriate Ministry). This strategy about risks entails an explicit political decision about the trade-off between costs and risks. The actual risk management operation is often run at a separate agency responsible for management of the sovereign debt or at the central bank if it manages the debt, and is typically segregated from other treasury... Journal: Financial Market Trends Year: 2005 Pages: 117-134 Volume: 2005 Issue: 1 Handle: RePEc:oec:dafkab:5LGMKTVBN0JL Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: White Paper on Government of Collective Investment Schemes (CIS) Abstract: Collective Investment Schemes (CIS) have been one of the most significant developments in financial intermediation during the past few decades. OECD data indicate that CIS assets have been rising sharply as a share of national income and a share of financial assets in most Member countries. In addition to functioning as an effective vehicle for individuals to implement their preferred investment strategies, CIS already play a major role in providing for retirement income. This role is likely to grow in coming years. Overall, the experience of the investing public as well as policy makers has been highly positive. CIS have enabled even fairly small investors to participate in the strong growth of capital markets in the past two decades. CIS make it possible for relatively small... Journal: Financial Market Trends Year: 2005 Pages: 137-169 Volume: 2005 Issue: 1 Handle: RePEc:oec:dafkab:5LGMKTV8TJ5F Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of OECD Financial Outreach Activities in 2004 Abstract: Following the end of the “Cold War”, the OECD has, since the early 1990s, been conducting “Outreach” activities (i.e. policy dialogue and capacity-building cooperation activities with non-Member economies), first with the Central and Eastern European countries in transition, and now extending to many other emerging economies. These “Outreach” activities have of course included financial sector reform, as the financial sector is often considered one of the key sectors in assisting these economies’ developments. The OECD’s efforts in this area have focused on, and continue to give primary attention to, capital market reform (including corporate governance) as well as insurance and pension market policies and reform on a regional basis; they have been recently targeting Asia, as this... Journal: Financial Market Trends Year: 2005 Pages: 173-189 Volume: 2005 Issue: 1 Handle: RePEc:oec:dafkab:5LGMKTV7K2JJ Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Global Pension Statistics Project: Data Update Abstract: The statistical exercise covers an extensive range of indicators. At this stage of the data collection, most of the relevant information was collected on autonomous pension funds, the fund type for which most of the detailed information was provided. However, autonomous pension funds do not represent the totality of pension plans’ activities. It would thus be important to obtain additional information, in particular on book reserve systems and pension plans administered under the... Journal: Financial Market Trends Year: 2005 Pages: 191-194 Volume: 2005 Issue: 1 Handle: RePEc:oec:dafkab:5LGMKTV6WG9V Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Governance of Banks in China Abstract: With the economic reform in the late 1970s, it has been an objective of government policy for Chinese banks to move away from their traditional passive role of executing directives adapted to the active role in resource allocation of banks in a market economy. However, owing to unclear ownership structures and a history of support of regional and industrial policy, most Chinese banks have had difficulty making the transition. This is particularly true for the four large state-owned commercial banks (SOCBs). In 1998-99, a significant effort to strengthen SOCB balance sheets was undertaken, but the results were disappointing. In the most recent phase of the reform, which began in 2003, the authorities concluded that >further attempts at rehabilitation of the SOCBs had to address the issue of bank governance...... Journal: Financial Market Trends Year: 2006 Pages: 67-108 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJK1STWC Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Improving Financial Literacy: Analysis of Issues and Policies Abstract: In 2003, the OECD established the Financial Education Project in response to the increasing interest of its member countries in improving the financial literacy of their consumers. Phase one of this project has culminated in the publication of the first major study of financial education at the international level. This book, Improving Financial Literacy: Analysis of Issues and Policies (OECD, 2005, forthcoming), contributes to the development of consumer financial literacy by providing information to policymakers on effective financial education programmes and by facilitating the sharing of experience in the field of financial education and awareness. Journal: Financial Market Trends Year: 2006 Pages: 111-123 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJJWD2KK Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The Aggregate and Structural Impact of Ageing on Financial Markets: Some Quantitative Assessments Abstract: Ageing will translate into long run trends in supply as well as demand of capital in the next decades. This paper provides some quantitative assessments of the effects on financial markets of ageing in four large OECD countries (United States, Japan, Germany, and France). Using a simplified general equilibrium model with overlapping generations, it suggests that ageing could bolster capital-labour ratios and lower interest rates in the future (by 25 bp to 100 bp in the long run, depending on the characteristics of pension systems reforms). In this context, the fear for a future “asset meltdown” due to ageing is probably overstated. The model also suggests that the individual accumulation of capital is likely to increase in the future and require structural changes in financial markets. Households will increasingly need to insure against the uncertainty related to future asset prices, rates of return on capital or individual longevity.... Journal: Financial Market Trends Year: 2006 Pages: 127-149 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJJRNNKC Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Pension Funds for Government Workers in OECD Countries Abstract: In the past few years, there has been a trend towards the harmonisation of pension policies for private and public sector workers, with the introduction of occupational complementary pension funds for civil servants. In many OECD countries these funds are among the largest in terms of assets and number of participants and constitute an important share of financial assets. Nonetheless, civil servants’ pension funds are exposed to particular risks related to the multiple roles played by the state which is, at same time, sponsor, regulator, supervisor, service provider, fiduciary agent and recipient of pension fund investments. Specific government-related agency problems can arise with respect to these funds which differ from those frequently analysed in the private sector. This paper analyses these risks in light of the experiences of Australia, Canada, Japan, the Netherlands and the United States and identifies good practices on how to avoid or mitigate them. Journal: Financial Market Trends Year: 2006 Pages: 153-179 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJH0047H Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Guidelines for Insurers' Governance Abstract: On 28 April 2005, the OECD Council approved the Recommendation on Guidelines for Insurers’ Governance. Guidelines were first endorsed by the OECD Insurance and Private Pensions Committee in collaboration and wide consultation with the 30 member countries’ governmental experts in the insurance sector as well as the insurance and reinsurance industry. These guidelines were also deemed fully compatible and consistent with the OECD Revised Principles on Corporate Governance by its Steering Group in October 2004. Journal: Financial Market Trends Year: 2006 Pages: 183-212 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJGVV8S8 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Global Pension Statistics Indicators Abstract: In 2002, the OECD launched, through the Working Party on Private Pensions and the Task Force on Pension Statistics,1 the Global Pension Statistics Project,2 which aims to establish a harmonised set of statistics and indicators related to funded pensions. This article3 is an extract from the OECD newsletter “Pension Markets in Focus”, Issue 1. Journal: Financial Market Trends Year: 2006 Pages: 213-230 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJGSC99W Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of Recent Trends in Financial Markets Abstract: Over the past few months, prices in major financial markets have remained strong despite further oil price increases. After major equity markets had shown a soft spot around March and April, they regained their upward trend in the second quarter. Terrorist attacks in London in July and the hurricane Katrina in the United States which hit the New Orleans region at the end of August did not disrupt markets, despite the large size of human, economic and insured losses associated with the latter event. Journal: Financial Market Trends Year: 2006 Pages: 7-63 Volume: 2005 Issue: 2 Handle: RePEc:oec:dafkab:5L9VCJK5TF33 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of Recent Trends in Financial Markets Abstract: Financial markets in major economies have been broadly strong after some weakening in the first part of the fourth quarter of 2005. Equity markets in the euro area have been buoyant over the past few months, and the strong upswing of Japanese markets in the fourth quarter was perhaps driven by prospects of the end of deflation. Journal: Financial Market Trends Year: 2006 Pages: 9-58 Volume: 2006 Issue: 1 Handle: RePEc:oec:dafkab:5L9N6D79JGG2 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The Financial Policy Landscape: A Conceptual Overview Abstract: This article discusses different aspects of the formulation of financial policy against the backdrop of a changing financial services landscape. Recent trends and developments in the financial services industry, and some longer dated issues as well, present a number of challenges for regulators and supervisors. Journal: Financial Market Trends Year: 2006 Pages: 61-109 Volume: 2006 Issue: 1 Handle: RePEc:oec:dafkab:5L9N6D76ZN30 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Risk Capital in OECD Countries: Past Experience, Current Situation and Policies for Promoting Entrepreneurial Finance Abstract: This article follows up on monitoring and analysing developments and structural issues related to risk capital undertaken by the OECD since the mid-1990s. Risk capital, i.e. finance for fast-growth SMEs, should help to foster entrepreneurship and a high rate of company formation which is seen as essential to achieving full employment. Journal: Financial Market Trends Year: 2006 Pages: 113-151 Volume: 2006 Issue: 1 Handle: RePEc:oec:dafkab:5L9N6D72XN33 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Pension Fund Demand for High-quality Long-term Bonds: Quantifying Potential “Scarcity” of Suitable Investments Abstract: The article describes the results of a modeling exercise to gauge the size of potential pension fund demand for bonds under some simplifying assumptions, so as to illustrate the potential role of this specific group of investors. It provides a measure of the potential excess demand for high-quality fixed-income instruments from pension funds, using the admittedly restrictive assumptions that pension funds invest only in high-quality bonds in an attempt to achieve cash-flow matching of their liabilities. Journal: Financial Market Trends Year: 2006 Pages: 155-201 Volume: 2006 Issue: 1 Handle: RePEc:oec:dafkab:5L9N6D5B8SXV Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The OECD Global Pension Statistics Project: Overview of the Financial Wealth accumulated under Funded Pension Arrangements Abstract: A useful proxy for the total assets accumulated in long-term savings and retirement systems is the sum of investments of pension funds and life insurance companies. This proxy covers the vast majority of occupational and personal pension arrangements for both the public and private sectors that rely on funding. In 2004, the total assets held by pension funds and life insurance companies grew by over USD 3.3 trillion or 1.5 percentage points of total GDP in OECD countries. Journal: Financial Market Trends Year: 2006 Pages: 205-235 Volume: 2006 Issue: 1 Handle: RePEc:oec:dafkab:5L9N6D57JF28 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of OECD Financial Outreach Activities in 2005 Abstract: In the late 1980's the OECD began co-operation (i.e. policy dialogue with nonmember economies) with the Asian Newly Industrialising Economies, and when the Berlin wall fell in 1989 it launched a programme with the Central and East European countries in transition. Journal: Financial Market Trends Year: 2006 Pages: 237-247 Volume: 2006 Issue: 1 Handle: RePEc:oec:dafkab:5L9N6D54WKXN Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Financial System Reform in China: Discussions with Chinese Authorities Abstract: Over the past few years China has emerged as a major player in the global economy with a pivotal position in global production, trade and, increasingly, finance. In the context of large imbalances in world growth rates, China has helped sustain world economic expansion, especially in the Asia Pacific region. China is also an important force in global financial flows. The country is one of the world’s largest recipients of FDI inflows. Moreover, China, along with other Asian economies, has been accumulating reserves, thereby supporting the present configuration of exchange rates in major OECD regions. The country is now a major investor in key asset markets, such as the international market in government securities. Journal: Financial Market Trends Year: 2006 Pages: 63-85 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5NHZGVH Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The SME Financing Gap: Theory and Evidence Abstract: Many commentators have postulated a “financing gap” for small and mediumsized enterprises (SMEs), meaning that there are significant numbers of SMEs that could use funds productively if they were available, but cannot obtain finance from the formal financial system. This article summarises an OECD report (OECD, 2006) on this topic which seeks to determine how prevalent such a gap may be – both in OECD countries and non-member economies – and recommends measures to foster an improved flow of financing to SMEs. Journal: Financial Market Trends Year: 2006 Pages: 89-97 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5NGGHJG Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Factors behind Low Long-Term Interest Rates Abstract: Long-term bond yields have been low in recent years both in nominal and real terms, and – especially in the United States – they have reacted differently to shifts in monetary and fiscal stances relative to previous cycles. This article examines various possible explanations for this behaviour, such as the effects of changes in monetary policy frameworks on inflation and interest rate expectations; developments in ex ante saving-investment balances, and shifts in investors’ portfolio preferences (including official reserve accumulation, “petro-dollar” recycling and pension fund demand for longer maturities). The article concludes that it is unlikely that any individual explanation can account for the level and profile of bond yields in recent years, but that an important element has been a compression in term premia, together with shifts in expected short rates. Even though bond yields have started to rise in the early part of 2006, they are unlikely to go back to the levels that prevailed in the 1980s or the early 1990s, as several of the factors that drove them lower are set to persist. Journal: Financial Market Trends Year: 2006 Pages: 101-141 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5NDW0JK Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The Impact of Pension Funds on Financial Markets Abstract: This paper empirically explores the impact of pension funds on market volatility, equity prices, government and corporate bond yields for a panel of 24 countries. The results show a positive and statistically significant relationship between market volatility and pension assets. It complements micro evidence (Dennis and Strickland, 2002) as well as macro findings (Davis, 2004). In addition, equity prices are found to be positively correlated with pension funds, a finding observable for both OECD countries and emerging market economies (EMEs) and present in both the short and long terms. Furthermore, there is evidence indicating a negative link between pension fund assets and both corporate and government bond yields. This might be due to the sizeable buying effects of pension funds, particularly when governments have the tendency to use pension funds to finance implicit pension debts when the traditional pay-as-you-go systems shift to funded systems. Journal: Financial Market Trends Year: 2006 Pages: 145-167 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5NBRZ7D Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: OECD Guidelines on Pension Fund Asset Management Abstract: The OECD Guidelines on Pension Fund Asset Management set out a basic framework for the regulation of pension fund investment. The Guidelines start with the basic premise that the regulatory framework should take into account the retirement income objective of a pension fund. Two other essential aspects of the regulatory framework are the prudent person standard and the statement of investment policy. Regulations may also include quantitative limits, but only as long as they are consistent with and promote the prudential principles of security, profitability and liquidity pursuant to which assets should be invested. These Guidelines were developed by the Working Party on Private Pensions and the Insurance and Private Pensions Committee and were adopted by the OECD Council on 26 January 2006. They complement the "Recommendation of the Council on Core Principles of Occupational Pension Regulation", adopted by the OECD Council in July 2004. Journal: Financial Market Trends Year: 2006 Pages: 171-187 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5N9GQNV Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Overview of the Financial Wealth Accumulated under Funded Abstract: In addition to private pension fund and life insurance assets, several countries have accumulated large amounts of pension assets in their national pension reserve funds. Pension reserve fund refers to assets set aside by otherwise pay-as-you-go systems in preparation for the rising fiscal costs resulting from the predicted ageing of the population over the next few decades. Journal: Financial Market Trends Year: 2006 Pages: 189-221 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5N856KJ Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Highlights of Recent Trends in Financial Markets Abstract: After some significant corrections in the second half of May and in early June, major equity markets have resumed their growth, in some cases regaining levels reached before the May-June contraction. Against a backdrop of healthy corporate balance sheets, robust earnings growth and low default rates, investor sentiment has remained positive, as reflected in these equity market developments and compressed credit spreads. However, there are signs of increasing nevousness, which include the May/June market turbulence and somewhat increased levels of historical and implied volatility. The increased nervousness may reflect in part downward revisions to economic forecasts. Journal: Financial Market Trends Year: 2006 Pages: 9-61 Volume: 2006 Issue: 2 Handle: RePEc:oec:dafkab:5L9GD5NL8GG1 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Financial Markets Highlights - May 2007 Abstract: There was a sizeable correction in financial markets in February. However, since then all of the reflation trades have returned: equities have recouped their losses to the end of April; bonds yields have fallen and spreads have resumed their narrowing pattern; commodities have rallied along with commodity currencies; and the US dollar is weaker.... Journal: Financial Market Trends Year: 2007 Pages: 11-22 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4P5W2QK5D6 Template-type: ReDIF-Article 1.0 Author-Name: Sebastian Schich Author-Name: Jung-Hyun Ahn Title: Housing Markets and Household Debt: Short-term and Long-term Risks Abstract: High levels of household indebtedness have been considered one source of risk for households’ balance sheets and financial stability for some time now. Household debt has risen in many OECD countries, although there is great variation among them in terms of the levels and compositions of debt, the distribution of associated risks within the financial system and between the latter and the household sector. Journal: Financial Market Trends Year: 2007 Pages: 191-214 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJDP0J9T Template-type: ReDIF-Article 1.0 Author-Name: Hans J. Blommestein Author-Name: Greg Horman Title: Government Debt Management and Bond Markets in Africa Abstract: This article presents highlights from the forthcoming OECD cross-country study Public Debt Management and Bond Markets in Africa. Debt managers from an increasing number of emerging market jurisdictions face challenges similar to those of their counterparts from advanced markets due to competitive pressures from global finance and the related need to implement OECD leading practices in this policy area. The article shows that OECD standards in public debt management and related market operations are, therefore, of great importance for public debt management and bond market development in Africa. Several African debt managers have introduced the leading debt management practices of OECD countries, use them for designing new debt strategies (including for managing contingent liabilities), and have made impressive progress in developing their local government securities markets. Many countries in the region are taking advantage of debt reduction initiatives. Avoiding falling back into positions of unsustainable debt is identified as a key challenge for many African governments. OECD financial policy makers are increasingly interested in developments in emerging markets, including those on the African continent. Moreover, emerging markets (including the latest emerging market region, Africa) are an increasingly important asset class for investors from the OECD area. Thus, the policy conclusions and priorities identified here are of interest to not only African countries but also the OECD area and other emerging market countries. Local bond markets in several African countries have gained in strength in terms of liquidity and maturity structure, making them more attractive for important categories of OECD investors and less vulnerable to exchange rate shocks. Journal: Financial Market Trends Year: 2007 Pages: 217-244 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJDHV4VH Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Update on Financial Market Developments Abstract: Triggered by sub-prime and Shanghai stock exchange volatility, major stock markets suffered a significant correction at the end of February. Markets have since recovered and European markets have over the past few weeks more than compensated these losses. While another downturn on the Shanghai exchange end of May led to some increases in volatility on major markets, they have so far not altered their course... Journal: Financial Market Trends Year: 2007 Pages: 23-33 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4P0T2KDC25 Template-type: ReDIF-Article 1.0 Author-Name: Adrian Blundell-Wignall Title: An Overview of Hedge Funds and Structured Products: Issues in Leverage and Risk Abstract: The size of the hedge fund sector, using IOSCO sources and results from responses to an OECD Questionnaire on Hedge Funds, is around USD 1.4 trillion in assets under management (AUM). While this does not seem that large compared to total global AUM, the hedge fund share of trading turnover (augmented by leverage and investment style) is much greater than its share of global AUM.... Journal: Financial Market Trends Year: 2007 Pages: 37-57 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4P0T2C7W0Q Template-type: ReDIF-Article 1.0 Author-Name: Adrian Blundell-Wignall Title: The Private Equity Boom: Causes and Policy Issues Abstract: Private equity, by focusing on under-performing companies that can be transformed and subsequently re-floated, fosters rapid corporate restructuring – enhancing productivity. M&A and private equity deals are very strong at present, and private equity use of leverage is accelerating sharply... Journal: Financial Market Trends Year: 2007 Pages: 59-86 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4L3HFD8KNN Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The Role of Private Pools of Capital in Corporate Governance: Summary and Main Findings about the Role of Private Equity Firms and "Activist" Hedge Funds Abstract: In November 2006, the OECD Steering Group on Corporate Governance initiated a study of the role of privately organised pools of capital (“alternative investment vehicles”) in corporate governance. With a rapid increase in the size of transactions and investments, and partly due to differences in corporate governance frameworks and company structures, there has been a growing public interest in private equity firms and “activist” hedge funds. The Steering Group agreed that the distinct corporate governance aspects that emerge in these discussions required special attention based on the OECD Principles of Corporate Governance (OECD Principles). This Report summarises the main conclusions reached by the Steering Group in April 2007, including the findings of a factual review that were taken into consideration. On the basis of available evidence, the Steering Group concluded that “activist” hedge funds and private equity firms could help strengthen corporate governance practices by increasing the number of investors that have the incentive to make active and informed use of their shareholder rights. It was agreed that, from a corporate governance perspective, there was no need to promote a special set of principles for private equity firms and “activist” hedge funds, but that the opportunities and challenges that follow from their ownership strategies should instead be analysed within the general framework of the OECD Principles, also taking into account existing voluntary standards established and promoted by the industry. Journal: Financial Market Trends Year: 2007 Pages: 87-104 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJFHX0LV Template-type: ReDIF-Article 1.0 Author-Name: Pablo Antolín Author-Workplace-Name: OECD Title: Longevity Risk and Private Pensions Abstract: This paper examines how uncertainty regarding future mortality and life expectancy outcomes, i.e. longevity risk, affects employer-provided defined benefit (DB) private pension plans liabilities. For this purpose, it examines the different approaches that private pension plans follow in practice when incorporating longevity risk in their actuarial calculations. Unfortunately, most pension funds do not fully account for future improvements in mortality and life expectancy. The paper then presents estimations of the range of increase in the net present value of annuity payments for a theoretical DB pension fund. Finally, the paper discusses several policy issues on how to deal with longevity risk emphasising the need for a common approach. In this regard, it argues, following Antolin (2007), that to assess uncertainty and associated risks adequately, a stochastic approach to model mortality and life expectancy is preferable because it permits to attach probabilities to different forecasts. Journal: Financial Market Trends Year: 2007 Pages: 107-128 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJF9S5HL Template-type: ReDIF-Article 1.0 Author-Name: Carolyn Ervin Author-Name: Sebastian Schich Title: Asset Allocation Challenges for Pension Funds: Implications for Bond Markets Abstract: Pension funds have become the largest class of investors in many markets and, given their size, the allocation of their assets has important implications for the relative prices of financial assets. There may be a trend shift of private (defined benefit) pension fund asset allocation strategies away from equity to bonds, especially to government bonds, given their limited credit risk. The potential demand for such bonds could, in principle, be very substantial, sufficient in fact to result in a scarcity of such bonds in circulation. Many debt managers have taken advantage of current bond market conditions and issued long-term to ultra-long-term bonds. But whether they should follow a strategy of maturity-lengthening with the express aim to facilitate the task for pension fund managers is a different matter. Most policy makers would not recommend that governments undertake to issue long-term debt with the express intent of meeting this demand, not least because they expect the price mechanism to clear apparent imbalances in asset markets. Journal: Financial Market Trends Year: 2007 Pages: 129-151 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJF6ZQNS Template-type: ReDIF-Article 1.0 Author-Name: Pablo Antolín Author-Workplace-Name: OECD Author-Name: Hans J. Blommestein Author-Workplace-Name: OECD Title: Governments and the Market for Longevity-indexed Bonds Abstract: Uncertainty about length of life, longevity risk, is a growing financial problem for pension funds and annuity providers. Unfortunately, there is a lack of financial instruments to hedge against this longevity risk, thereby complicating risk management by pension funds and hindering the expansion of the annuity market. Consequently, this paper examines the role of government in promoting a private market solution for longevity hedging financial products. Governments could in principle improve the market for annuities by issuing longevity-indexed bonds and by producing a longevity index. The paper argues that the first public policy role is hampered by the fact that governments are themselves already exposed to significant longevity risk. However, governments could take other steps such as producing a reliable longevity index. Journal: Financial Market Trends Year: 2007 Pages: 153-175 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJF10KBV Template-type: ReDIF-Article 1.0 Author-Name: Hans J. Blommestein Author-Name: Greg Horman Title: Retail Instruments in Public Funding Strategies Abstract: Retail borrowing programmes are one component of government debt issuance in both OECD and non-OECD countries. These programmes take a variety of forms and often exist to satisfy a number of objectives. In some jurisdictions, they play a significant funding role. Even in countries where retail borrowing programmes play a small role, they are in many cases politically important because they satisfy primarily social objectives. In recent years, some OECD countries have begun to reconsider their retail borrowing programmes. Shrinking borrowing requirements in a number of countries have led to priority being put on maintaining liquid wholesale markets. Other countries continue to see benefits from their retail borrowing programmes and use them as a significant and stable source of funding. These governments are often innovative at finding ways to drive down administration costs, such as through the use of new electronic distribution channels and total dematerialisation of securities. Journal: Financial Market Trends Year: 2007 Pages: 177-189 Volume: 2007 Issue: 1 Handle: RePEc:oec:dafkab:5L4MBJDW7XNQ Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Financial Markets Highlights November 2007 Abstract: Over the summer, financial markets weakened substantially as some of the risks that had built up during a period of easy financing, in particular in the housing market, materialised. Volatility has increased, and while equity markets have regained strength, tensions remain on credit markets.... Journal: Financial Market Trends Year: 2007 Pages: 11-25 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4CR9JKCGVG Template-type: ReDIF-Article 1.0 Author-Name: Adrian Blundell-Wignall Title: Structured Products: Implications for Financial Markets Abstract: The paper looks at financial market innovation and how it has led to the rapid growth of structured products. It explores the mechanisms that come into play as assets inside these products (mortgages, credit card receivables, etc.) suffer losses. The potential size of such losses is currently concerning financial markets, and the paper looks at various ways to quantify the issues and where, going forward, pressures are most likely to arise. The problem is seen mainly as a stock adjustment issue (related to inventories of assets etc.) that is going to require time to set right. Time could well be more important than the cost of capital. The idea of a super fund to buy up unwanted assets should be seen in this context. The paper goes on to look at financial market implications, including the credit supply process, spreads, and the dollar. Journal: Financial Market Trends Year: 2007 Pages: 27-57 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4CVGVTVS41 Template-type: ReDIF-Article 1.0 Author-Name: Sebastian Schich Title: Selected Questions Regarding Hedge Funds Abstract: There has been rapid growth in the share of assets under control of hedge funds over the past decade and, as a result, these entities have now become firmly entrenched in the universe of investment vehicles and, in turn, have themselves become important investors. Against this background, the OECD Committee on Financial Markets (CMF) discussed specific issues related to these entities on several occasions as part of its market surveillance activity. The present article provides a summary of selected aspects of recent CMF discussions related to hedge funds, focusing in particular on the responses to a questionnaire on hedge funds that was circulated prior to the CMF meeting in May 2007 to inform the discussion at that meeting. These various discussions suggested that a consensus is emerging that the most efficient way to address any policy concerns related to the activity of hedge funds is to focus on hedge fund investors and counterparties rather than on these entities themselves. Only a minority of countries are considering policy actions in a variety of areas, but many respondents seem to underline the need for public authorities to continue monitoring developments regarding hedge funds. Journal: Financial Market Trends Year: 2007 Pages: 61-92 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4CR9J116JJ Template-type: ReDIF-Article 1.0 Author-Name: Daniel Blume Author-Name: Felipe Alonso Title: Institutional Investors and Corporate Governance in Latin America: Challenges, Promising Practices and Recommendations Abstract: This report addresses the issue of how some institutional investors in Latin America have been working to encourage better corporate governance in the companies in which they invest, and what further policy initiatives and practices may be desirable to enhance their role as a force for better governance in the region. It provides a brief overview of 1) consensus recommendations on the role of institutional investors as active and informed owners agreed by the Latin American Roundtable on Corporate Governance and in the OECD Principles of Corporate Governance; 2) the Latin American context, including market characteristics and the size and make-up of the institutional investor sector in each of the participating countries; 3) country legal and regulatory frameworks impacting on how Latin American institutional investors behave; 4) challenges and promising practices identified in separately developed country reports focusing on experience in Argentina, Brazil, Chile, Colombia, Mexico and Peru; 5) issues for further recommendations; and 6) conclusions. Journal: Financial Market Trends Year: 2007 Pages: 93-131 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4D0L557PBN Template-type: ReDIF-Article 1.0 Author-Name: Yu-Wei Hu Author-Name: Colin Pugh Author-Name: Fiona Stewart Author-Name: Juan Yermo Title: Collective Pension Funds: International Evidence and Implications for China's Enterprise Annuities Reform Abstract: Collective pension funds (CPFs) – occupational pension funds that cover the employees of more than one employer (enterprise) – have been operating in OECD countries for decades. Generally speaking, there are two models, i.e. closed pension funds, with membership restricted to a particular industry or group of industries, and open pension funds, open to all types of companies. The governance structure of such funds also operates in two ways – via an internal model (with trustees appointed by employers and employees) and an external model (with professional, commercial trustees). In this report, we first describe and analyse how CPFs are operated in selected OECD countries and non-OECD economies. Then, we review occupational pensions (or Enterprise Annuities – EA – in Chinese terminology) in general and CPFs in particular. Given the problems holding back the development of EA plans among small and medium-sized enterprises (SMEs) in China, and bearing in mind both China’s specific situations and international best practices, we propose a number of policy recommendations to promote the development of CPFs covering the SME sector. Our practical policy recommendations include: 1) industry funds with more open membership; 2) establishment of new purpose-built industry funds; 3) establishment of new regional EA administration centres acting as independent pension councils (trustees) for open pension funds; 4) in parallel to these policy initiatives in China, commercial trustees should be encouraged to establish CPFs targeting the SME sector. Journal: Financial Market Trends Year: 2007 Pages: 135-166 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4D0L4WDKVH Template-type: ReDIF-Article 1.0 Author-Name: Sebastian Schich Title: Indian Financial System Reform: Selected Issues Abstract: India’s financial sector has become much more diversified, with capital markets playing an increasingly important role. These markets have been substantially deregulated and, recent changes notwithstanding, many restrictions on capital flows have been eased, especially with respect to equity inflows. As well, the health of the public banks, which initially had very weak balance sheets, has been restored. While India’s regulatory, supervisory and financial policy authorities have made progress, they are likely to face challenges related to several aspects characterising the country’s financial system, including its banking sector and its capital markets. Banks remain subject to government imposed constraints on their lending portfolios and the banking sector is still dominated by public institutions. Although the Indian government has intensified its efforts to develop corporate bond markets, the latter remain relatively underdeveloped. Equity markets, which have evolved considerably, have recently been characterised by substantial price increases, in part reflecting large foreign inflows. This development raises the question of sustainability of valuations under changing global monetary liquidity conditions and risk aversion. Different policy responses have been considered by Indian authorities. Representatives from these authorities expressed a reluctance to interfere with the market process. However, the recent decisions by policy authorities suggest that during the course of the ongoing deliberations by policy authorities, these considerations have been outweighed by concerns about the consequences of failing to constrain inflows. The decision by authorities to disallow issuance of “participatory notes” by foreign institutional investors has to be seen in this context. Journal: Financial Market Trends Year: 2007 Pages: 167-198 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4D0L34SPR7 Template-type: ReDIF-Article 1.0 Author-Name: Hans J. Blommestein Author-Name: Gert Wehinger Title: Public Debt Management and the Evolving Market for (Ultra-)Long Government Bonds Abstract: The demand for long-dated bonds has increased, driven by stricter asset-liability matching regulations governing pension funds, new international accounting standards, as well as new risk-based regulations for insurance companies. In several countries, pension funds and insurance companies are important investors in long-dated bonds. Projections of rapidly ageing and longer-living populations in most OECD countries indicate that the demand for ultra-long paper is poised to grow further. Governments in several OECD countries have responded to that demand, by starting or re-introducing the issuance of very long (20 to 30 years) and ultra-long (30 years and longer) bonds, provided that the issuance of those bonds is consistent with the cost-risk objectives of the minimisation of borrowing cost subject to a preferred level of risk. Consequently, there has been an increase in the supply of (ultra-)long bonds as a percentage of total bonds outstanding in many markets. An important consideration for issuers is that pension funds and insurance companies are to an important degree buy-and-hold investors. This may lead to illiquid markets in long-dated paper when the ongoing supply of (ultra-)long government bonds remains below a certain critical level, resulting in higher government borrowing costs than paper issued in liquid markets. From a medium-term strategic issuers’ perspective, a liquid market in (ultra-)long bonds requires substantial and regular issues by government debt managers. Changes in regulatory standards and the adoption of new international reporting standards have increased the focus on liability-driven investing by pension funds. The study concludes that it is likely that there will be some re-allocation of the assets of many pension funds and insurance companies toward (ultra-)long bonds. However, views differ as to the pace and magnitude of such a re-allocation.résumé La gestion de la dette publique et l’évolution du marché des titres d’État à (ultra) long terme La demande d’obligations à échéances éloignées a augmenté, sous l’effet de plusieurs facteurs : durcissement de la réglementation relative à la congruence des actifs et des passifs applicables aux fonds de pension, nouvelles normes comptables internationales et nouvelles réglementations fondées sur les risques pour les sociétés d’assurance. Dans plusieurs pays, les fonds de pension et les sociétés d’assurance sont de gros investisseurs en obligations à échéances éloignées. Les projections faisant état d’un vieillissement rapide des populations et de l’allongement de l’espérance de vie dans la plupart des pays de l’OCDE indiquent que la demande de titres à ultra long terme ne peut que s’accroître encore. Les gouvernements de plusieurs pays de l’OCDE réagissent à cette demande en introduisant ou réintroduisant des émissions de titres à très long terme (20 à 30 ans) et à ultra long terme (30 ans et plus), dès lors que ces émissions sont cohérentes avec leurs objectifs ‘coût-risque’ de minimisation du coût d’emprunt pour un niveau de risque préféré. On a donc assisté sur de nombreux marchés à une augmentation de l’offre d’obligations à (ultra) long terme en pourcentage de l’encours total d’obligations. Considération importante pour les émetteurs, les fonds de pension et les sociétés d’assurance sont dans une large mesure des investisseurs qui suivent une politique de type « acheter pour conserver ». Cela peut conduire à des marchés illiquides des titres à échéances éloignées lorsque l’offre de titres d’État à (ultra) long terme reste inférieure à un certain seuil critique, ce qui accroît les coûts d’emprunt des pouvoirs publics par rapport aux titres émis sur des marchés liquides. Du point de vue des émetteurs ayant une stratégie à moyen terme, un marché liquide des obligations à (ultra) long terme suppose des émissions substantielles et régulières de la part des gestionnaires de la dette publique. L’évolution des normes réglementaires et l’adoption des nouvelles normes de communication financière ont accru la tendance des fonds de pension à orienter leurs investissements en fonction de leurs engagements. Selon les conclusions de l’étude, on assistera probablement à une certaine réallocation des actifs de nombreux fonds de pension et sociétés d’assurance au profit des obligations à (ultra) long terme. Néanmoins, les avis divergent quant au rythme et à l’ampleur de ce phénomène. Journal: Financial Market Trends Year: 2007 Pages: 201-238 Volume: 2007 Issue: 2 Handle: RePEc:oec:dafkab:5L4CR9F8Q2F6