Corporate pension plans recorded significant gains in funded status in October amid rising discount rates and rallying equities. The Treasury yield curve rose and remained inverted between the one- and 10-year tenors as investors continued to grapple with the Federal Reserve’s hawkish stance and its impact on economic conditions. Total return plans outpaced LDI-oriented plans due to positive equity returns and a lower hedge to rising discount rates as Treasury rates ticked up. NEPC’s hypothetical pension plans witnessed a funded status gain of 10% for the total-return plan compared to 3.6% for the LDI-focused plan.

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