- 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