While we are beset by constant reminders of the faltering status of public pension systems across the entire country, there's a new source of pension funding that's showing great promise for both investors and retirees.
According to Bloomberg, cities across the U.S. sold nearly a billion dollars' worth of taxable pension bond securities in 2012, up nearly a third from the $670 million sold in 2011.
The reason? Near all-time-low interest rates are creating massive demand for investments that have offered some very strong yields to investors. BofA Merrill Lynch analysis suggests that the taxable city and state pension bond market earned 11.1 percent last year, versus 7.3 percent in standard muni credit.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
