Economics
The Corporate Debt Bonanza Is Helping Employers Shore Up Pensions
- Employers added $40 billion to pensions in 2016, GSAM says
- Higher PBGC premiums have pressured firms to close funding gap
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Employers saddled with swelling pension obligations and higher government fees on those liabilities are finding some relief in the corporate debt market.
Delta Air Lines Inc., Verizon Communications Inc., and FedEx Corp. have issued more than $14 billion in bonds this year in which some proceeds were flagged for bolstering their retirement programs, according to data compiled by Bloomberg. Last year, General Motors Co. did the same, and International Paper Co. had a debt sale as part of a plan to fund expenses including pension costs.