Pension Funds Reel From Falling Bond Yields

The video discusses the challenges pension funds face due to declining global yields, leading them to explore less liquid asset classes or take on more credit risk. Research indicates that as yields decrease, these funds become larger buyers, influencing long-term yields. Strategies include adjusting return assumptions or payout structures. Brian Reynolds highlights how pension fund allocations to riskier assets support the market, particularly credit and debt-funded buybacks. The video also covers the trend of increasing allocations to alternatives and illiquid assets, which can be advantageous during downturns.

What challenges are pension funds currently facing in finding yield?

How do pension funds' buying activities influence market dynamics?

What are some strategies pension funds can adopt in response to lower yields?

What role do pension funds play in supporting risk assets in the market?

What trends have been observed in pension funds' allocations since 2009?