[Vince Ferrer]

The Federal Reserve is the culprit here. Pension funds invest in a lot of fixed income securities. In fact they are often limited in what they can invest in. Currently the fed rate is so low that no one can make money on fixed income. As long as the Fed holds down rates, pension funds will continue to go bust.

This is the exact issue of why institutional investors in 2007-2008 bought risky investments like subprime mortgages, packaged up into bonds that were declared to be AAA, even though everyone knew they were tremendous risks. Interest rates had been falling since 1981, and they had to keep chasing higher returns. This meant adding risk.

[Kozy]

CALPERS is waiting to go all in on the High Speed train to nowhere. Those returns should take it right over the top,

[TexasGator]

“The Federal Reserve is the culprit here. Pension funds invest in a lot of fixed income securities. In fact they are often limited in what they can invest in. “

You should look up the CalPers asset allocation and then revise your post ...

[TexasGator]

“This is the exact issue of why institutional investors in 2007-2008 bought risky investments like subprime mortgages, packaged up into bonds that were declared to be AAA, “

Those with subprime mortgages were given BBB ...

[Kozy]

CALPERS is waiting to go all in on the High Speed train to nowhere. Those returns should take it right over the top,