Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Economy

BillZBubb

(10,650 posts)

5. For the most part, pension funds are restricted to "investment grade" bonds.

Reply to enlightenment (Reply #3)

Wed Jun 24, 2015, 08:39 PM

Jun 2015

Those are usually rated AA+ or better. I don't know of any large pension funds that allow buying junk bonds. That doesn't mean there are not any, but I would suspect it is rare.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

6 replies

= new reply since forum marked as read

Highlight:

Icahn warns market is �extremely overheated� [View all] marmar Jun 2015 OP

He's talking about the "high yield" bond market - junk bonds. BillZBubb Jun 2015 #1

It will kill some rats, mostly pscot Jun 2015 #2

Don't pension funds typically invest in high yield bonds? enlightenment Jun 2015 #3

For the most part, pension funds are restricted to "investment grade" bonds. BillZBubb Jun 2015 #5

Thank you for the reply. enlightenment Jun 2015 #6

He wouldn't say that if it were still trending up Warpy Jun 2015 #4