by John Darer® CLU ChFC MSSC RSP CLTC
Increasing yields on the 10 year United States Treasuries narrow the negative interest rate spread that has served as a growth rate when calculating the present value of damages under New York's Article 50-B structured judgment statute for almost a decade.
As it stands at time of publication, the present value of whatever amount a New York jury awards is higher than the amount awarded by the jury on any element of damages. This is because the statutory growth rate of 4% is higher than the discount rate. For the typical defendant, 9% interest* is then added onto the higher amount! Until the discount rate arrives at or exceeds 4% this phenomenon will continue.
United States 10 Year Treasury yields have ranged from 1.318% to 2.356% over the 52 weeks preceding the time of publication.
*State and local government defendants may pay a lower rate.