Earnings yield meaning

What was the background to the consultation? What was proposed? On 14 November 2024, the DfE opened a consultation examining adjustments to member contribution rates and the extension of Fair Deal to further education institutions within the TPS. The department requested feedback on potential increases to member rates after the 2020 scheme valuation indicated a lower-than-expected member contribution yield. In the TPS, members collectively are expected to contribute 9.6% of pay across the entire membership — the ‘member contribution yield’ — yet the 2020 estimate came in at 9.45%. The consultation papers highlighted that, if contribution rates were left unchanged, the resulting shortfall in member payments would need to be met by employers and, in the end, the taxpayer. Consequently, the DfE consulted on keeping the current six-tier contribution model, while raising the member contribution rates for tiers 2 to 6 by 0.3 percentage points to address the deficit. The tiered system operates by allocating pensionable earnings into defined bands, with a specified contribution rate applied to each...

Morningstar DBRS, in a note to investors, indicated that although it does not anticipate ‘systemic’ dangers, the shift from defined benefit (DB) to defined contribution (DC) pensions could still generate a broader ripple across markets. The Netherlands is set to move from arrangements that guarantee retirees an income based on final or career‑average earnings to a model where both employees and employers make monthly contributions into a savings pot. This transition is expected to bring about a major change in Dutch pension funds’ investment approach—moving away from dependable long‑dated government bonds towards higher‑return equity markets. Morningstar DBRS characterised the reform as one of Europe’s most significant pension revamps...

Overview This Practice Note outlines key characteristics of covenant loose and covenant lite financings and considers certain risks that investors in these facilities may encounter. It assumes a degree of familiarity with leveraged finance terminology and documentation. For introductory material on leveraged finance financial covenants, see Practice Note: Leveraged finance—financial covenants. For an introductory guide to acquisition finance, see Practice Note: Introductory guide to acquisition finance. The Glossary of acquisition finance terms and jargon may also be helpful... Terminology Traditional ‘covenanted’ facility European leveraged facility agreements have traditionally included a package of financial covenants designed to monitor the borrower‑group’s financial performance against a base case financial model. The full suite typically comprises the following covenants: Leverage — this is the ratio of the group’s total [net] indebtedness to its earnings before interest, tax, depreciation and amortisation ( EBITDA ). The leverage ratio gauges the group’s indebtedness against its ordinary operating profit; the higher the ratio, the more indebted the group and the greater...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...