Includes “… In today’s low interest rate environment, POBs appeal to issuers who believe they can earn more from investments than they will have to pay to borrow. … It’s important to note that the use of POBs falls into two categories. In what one might think of as a ‘true POB,’ the sponsoring government continues to make actuarially determined annual contributions to the pension fund, with the bond proceeds providing an extra boost to the pension system’s health. The other category is a form of deficit financing. The sponsoring government uses the POB proceeds as a replacement, instead of a supplement, for its annual contributions to the pension fund. …”