{"id":1931,"date":"2010-09-30T17:06:23","date_gmt":"2010-09-30T21:06:23","guid":{"rendered":"http:\/\/www.credittrends.com\/blog\/?p=1931"},"modified":"2010-10-04T15:20:24","modified_gmt":"2010-10-04T19:20:24","slug":"the-metlife-met-news-just-the-beginning","status":"publish","type":"post","link":"https:\/\/www.credittrends.com\/blog\/2010\/09\/30\/the-metlife-met-news-just-the-beginning\/","title":{"rendered":"The MetLife (MET) News Just the Beginning"},"content":{"rendered":"

News from MetLife (MET<\/a>) After Market Close: Low Interest Rates to Impact Earnings<\/a><\/strong><\/p>\n

Expect to hear a lot more about the impact of low interest rates. Not only is it affecting the asset side of the balance sheet, but the liability side as well, as I have been pointing out almost weekly since June.
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\"MET<\/a><\/p>\n

The run-up in stocks over the past 5 weeks, in fact, has been completely overcome, by the fall in long-term interest rates, with the 10-year treasury bond now yielding near 2.5%, and annuity rates not much higher. By comparison, the median pension plan has a 5.8% discount rate, a 8% long-term investment return assumption and is 57% in stocks, and 38% in fixed income.<\/p>\n

Based on data through last Friday, CT Capital <\/a>currently estimates defined benefit plans for both the median S&P 500 firm and the 1,300 total plans it tracks are underfunded by 31%.<\/p>\n

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