Accumulated Benefit Obligation (ABO)

Definition:

An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Risk controlled arbitrage

A self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio