QE Great for Europe Stock Markets, Not So Much for Pension Funds
Deutsche Lufthansa AG has the highest deficit relative to its market value, according to Citigroup data. Photographer: Jasper Juinen/Bloomberg
This article is for subscribers only.
Deutsche Lufthansa AG scrapped its dividend this year partly because of charges tied to its pension fund. Investors have been shunning the shares -- and those of peers that are likely to follow suit.
An unintended consequence of Mario Draghi’s bond-buying campaign has been an increase in the estimated cost of providing for retired workers. According to an index designed by Citigroup Inc., companies with the biggest pension deficits that have been forced to reduce profit forecasts are trailing the rest of the market by the most since 2013.