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Corporate pension funds about to plow back into fixed-income

Apr. 10, 2017 9:38 AM ETBy: Stephen Alpher, SA News Editor1 Comment
  • via Bloomberg
  • Helped by a booming stock market, corporate retirement plans have been digging themselves out of their holds, now 82% funded on average vs. 75% a few months ago, according to Morgan Stanley.
  • Once pensions hit the roughly 80%-funded level, says the team, they tend to cut back on stocks and boost fixed-income holdings, particularly long-dated investment-grade paper.
  • With $1.8T in assets, even small allocation changes at pension funds can affect equity and bond prices.
  • ETFs: LQD, CORP, CSI, CRED, QLTA, COBO, FCOR, CBND, IGIH, CWAI, WFIG

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