Future of covenant

The importance of covenant to DB schemes is widely recognised, but often the focus is on the rating itself rather than the “so what”. With the new Funding Code expected to bake covenant into the Fast Track requirements, trustees and corporates may be wondering if they need to do anything more than rating their covenant according to TPR’s 4-box scale every three years. This talk explores how thinking around covenant has evolved, and how it needs to evolve in the future as schemes mature. Practical examples will show how and where looking beyond the rating to the key elements of covenant support and risks will help you make better decisions for your DB scheme.