Ryan ALM
Blog
Massive Rotation?
A Bank of America research note published recently suggests that the significant improvement in corporate pension plan funding (Milliman calculates the collective funded status at >98%) will likely lead to a "massive rotation" from equities into corporate bonds. We absolutely...
Will there be enough money?
There is much chatter and speculation on social media regarding ARPA's funding and ability to meet all the promises. There is growing fear among some circles that somehow the "pool of resources" will fall short of meeting the objective to...
Another Arrow in Their Quiver
The Illinois State Assembly has passed HB0417, a piece of legislation designed to provide funding flexibility in support of the Chicago Park District pension fund. According to the brief explanation of the bill, the legislation "amends the Chicago Park District...
What Disposable Income?
US males have seen their median lifetime earnings collapse relative to those entering the workforce in the late 1960s and early 1970s despite the tremendous cost increases related to housing, post-secondary education, healthcare, etc. One needs not to look any...
History Does Repeat itself
Just this morning, I read an article from Bloomberg that highlighted the narrowing spreads available on high yield debt. In fact, they are so narrow that we are at historic lows! Here is a chart reflecting that fact: Yes, the...
Let's Talk Pensions
I am really pleased to once again be participating in a CAIA sponsored event. We will be sharing our thoughts on a variety of pension-related issues on June 1st. Please plan to join us. Let’s talk #pensions . In CAIA's...
Why it is Better NOT to Wait
We are working with a public fund prospect on a cash flow matching project to secure benefit payments as far out as the current fixed income allocation will permit. In our normal implementation we would cash flow match each monthly...
A Review Worth Doing!
US Senators Patty Murray and Bobby Scott have written to the Government Accountability Office (GAO) requesting that they conduct a review of target Date funds (TDFs), as they have grown to more than $1.5 trillion in AUM within 401(k)s and...
Not Performance Instruments
Bonds have enjoyed an incredible bull market run since 1982. Is the rally finally done? Unfortunately, my crystal ball is no better than anyone else's so I don't know when bonds will finally enter a bear market, but I can...
A Step in The Right Direction, but Not Quite There.
I read with interest about a public pension system approving the issuance of a pension obligation bond (POB) to sure up their plan's poor funding (this is not unusual in today's environment). I applaud them for doing so, as the...