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Years of falling interest rates and rising equity valuations have shrunk the cost of capital for firms such as Aegon.
During a period of falling interest rates, homeowners refinance their mortgages and often take out cash to consolidate debt.
The added benefit of falling interest rates, Professor Amit said, creates an ideal climate for certain small businesses to flourish.
Competitors "seemed to get a bigger kick out of falling interest rates than we did," Mr. Patrick said.
Fortunately for Scott, a combination of falling interest rates and a buoyant rental market came to his rescue.
The primary reason was a rise in the theoretical value of his pension because of falling interest rates.
Similar(33)
But the cost eventually came to seem intolerable, because of a combination of the bear market of 2000-03, fallinterestratesrands, and a change to accounting standards, which asked firms to report the annual change in their pensions burden.DC schemes have been around for 30 years or so, and were at first widely used by the self-employed and small businesses.
Over the last 30 years, the company has been one of the biggest beneficiaries of steadily falling interest rates, which have made bonds, and Pimco's trademark bond mutual funds, into star investments.
The government has met many conditions imposed by the International Monetary Fund in return for much-needed loans: a stable annual inflation rate of 5.8percentt, falling interest rates, adequate international reserves and the return of positive growth.
The recent rout follows several years of generally falling interest rates and comfortable bond returns.
It is hard to overestimate the impact of these falling interest rates on the housing market.
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