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Draghi's Rescue Plan Has Created a $103 Billion Problem

S&P Says Sinking Bond Yields Have Worsened Pension Shortfalls
Mario Draghi, President of the European Central Bank (ECB).

Mario Draghi, President of the European Central Bank (ECB).

Martin Leissl/Bloomberg

There's a corner of the pension world that needs to brace itself for Mario Draghi.

His European Central Bank's 1.1 trillion euro ($1.2 trillion) bond-buying plan might have already blown a 92 billion-euro hole in defined-benefit pension plans by depressing bond yields, Standard & Poor's said Feb. 26. And if the actual start of QE pushes yields further, for longer, companies may have to take drastic measures to make ends meet, and could face a hit to their credit ratings.