With borrowing costs reaching extraordinarily low levels throughout the pandemic, Pension Obligation Bonds (POBs) are drawing increasing attention. However, POBs are a tool that carry risks, as well as potential rewards. During this webinar, Becky Sielman, Milliman Principal and Consulting Actuary, discussed the risks and rewards of POBs. She also discussed a case study, “Pension Obligation Bonds: How One Town Quantified and Mitigated the Risks.” This case study outlines the process one town used to assess the associated risks and rewards of POBs and the measures put in place as part of the POB bond package to reduce those risks.
Building Safeguards into Pension Obligation Bonds
