Key Q4 Takeaways:
- 2016 turned out to be a year that defied consensus with different outcomes than telegraphed for Brexit and the U.S. election.
- After starting out the year in the doldrums with concerns over China, markets rallied globally by year-end with the election reigniting animal spirits.
- Rates sold off materially post the election but remain at levels seen only a few quarters ago.
- Higher rates were the primary driver of improved funded status for pension plans, which face further mortality assumption changes.
- Animal spirits dominate entering 2017 as the political transition in the U.S. is expected be business and market friendly.
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