GLG News by Stock Repurchase Accounting Academic Experts

As the author notes, pension managers often neglect risk management.  The question is, "Why?"  To understand the answer one must look for incentives to manage pension risk.  One must focus on the accounting for pensions.

The problems of subprime lending are hot topics.  Lack of underwriting standards and poor pricing are the primary concern.However lenders need to understand the cure or reaction to such concerns can cause even more harm.  Financial analysts need to understand how their clientele (e.g., banks)...

The attached article highlights the fact that banks are tailoring more products to an aging population.  Good businesses and industries evolve to meet the changing needs of the market place.  However new products also pose risks.  Financial analysts need to focus on the risk, as...

The consolidation of the banking industry has been, and will continue to be a continuous process.  The reason is economics.  However this process should intensify during the next several years because of regulation, specifically the Basel II accord.

Pension fund management has historically focused on maximizing return.  However today, risk management is taking center stage.  General Motor's announcement focuses on this point. 

Pension funds are embracing a new opportunity in property derivatives.  First, managers of pension funds must be careful to understand the derivative, its underlying asset, and the impact on the return/risk of the pension fund's portfolio.  Second, managers of pension funds can not focus on...

1.    The need for convergence of accounting standards is real.2.    The ability to converge accounting standards is challenging due to cultural and legal issues.3.    Although convergence will ultimately occur, it will occur with a broad based...

China's pension issues are real.The question is, "How will China's government address the pension issues?"Watch out.  Changes must be forthcoming.

The reality of pension fund management is simple:  fund managers have a fiduciary responsibility.  What that means is risk management is at the heart of managing pension funds.  Today, more than ever, risk management must go beyond the quest for higher returns. 

1.  The market is grasping a fundamental risk in defined benefit plans.  That risk is in matching the duration of the pension fund's assets and liabilities (i.e.,  immunizing the pension fund).2.  Accountants need to recognize this asset-liability risk and disclose...