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This study examines whether expected rate of return (ERR) manipulation is related to disclosure of pension asset allocation. FAS 132R(1), which requires firms to disaggregate the detailed categories of pension asset allocation, provides a natural experiment for studying the effect of enhanced...
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-habitat demand by the P&I sector for long-dated assets drives the long end of the yield curve. We draw on changes in regulations in … and to show that P&I demand is in part driven by hedging linked to the regulatory discount curve. When regulators reduce … the dependence of the regulatory discount curve on a particular security, P&I demand for the security falls and its yield …
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