A Double-edged Sword: The Economics of Pension Obligation Bond Financing for Local Governments

October 24, 2012
Webinar

Slides | Transcript

Pension Obligation Bonds (POBs) can be an appealing strategy for managing a public agency’s unfunded pension liability. As attractive as this approach may appear from a budgetary standpoint, the use of POBs can be a “double‐edged sword”– providing budget relief and interest rate savings offset by investment return risks and the substitution of more rigid long‐term financing terms. This webinar is designed to provide an examination of the benefits and risks of utilizing POBs and provides a discussion of the policy considerations, financing options, and disclosure requirements for financing pension liabilities.