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U.S. Pension Funding At All Time Low

|Includes: SPDR S&P 500 Trust ETF (SPY)

The S&P 500 group of companies has funded only 71% of its obligations, an all time low, and down from 77% in 2008, according to a Morgan Stanley report. The reasons are clear: low interest rates and poor equity returns.  The peak was in 1999 at 129% of funding requirements. With interest rates forecasted to be depressed for an extended period, corporations will have to allocate cash to the issue. Furthermore, MS has performed a study which indicates a correlation to stock performance and a company's funding obligations.