Sunday, July 29, 2012
FTSE 350 Pension minefield
Aggregate liabilities of FTSE350 companies at 35% of market capitalization. This is a strange one because you would imagine that the share price would fall to reflect these liabilities, but as the price falls the liabilities as a percentage would go up ! So maybe its easier to imagine that without pension liabilities the share price would be equivalently higher by around 33%.