Balancing the books

Liability-driven investment

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Pension deficits are quickly becoming the number one item on many UK company agendas. The introduction of accounting standard FRS17 last year elevated pension liabilities from little-noticed items in the footnotes to headline-grabbing figures on the balance sheet, while a sharp drop in UK bond yields in January briefly added an estimated £30 million to the pension deficits of FTSE-100 companies.Pension black holes have obstructed mergers and acquisitions involving UK firms, while the country