you are viewing a single comment's thread
view the rest of the comments
[–] 1 point 1 month ago (1 child)

But that's two different funding mechanics.

Defined benefit, buys bonds. So the government wants to build a metro in Sydney, borrow the money and own 100%.

Defined contribution, buys ownership. So the government wants to build a metro in Sydney, sells 40% ownership to fund the building phase.

  • source
  • parent
  • hideshow 1 child comment