Pension funds should use mark-to-market accounting, says Rhode

"As an equity investor, we’re very worried because we don’t even know the pure size of pension liabilities. Some funds are using discount rates of 8%. It makes no sense. They may be understating the magnitude of their pension liabilities by a factor of two, and so only showing half the truth,” said Rhode. “I think mark-to-market and fair value reporting is appropriate in a world where liabilities have become hedgeable.”

In 2001, the Danish government passed a law that required ATP and other d

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