Canada’s massive pension fund is reviewing its bond holdings in light of near zero interest rates, CEO says
Maybe short term. Don’t know what kind of bonds they are holding, but if many hit the open market during 4th quarter pension fund adjustments, central banks will have to purchase them to keep borrowing costs low for their respective governments in an environment already saturated with government debt.
There are exceptions, iirc India has some pretty high interest rates, and the market is so desperate for yield they are getting eaten up, but I don’t know if those pass pension fund rules.
Regardless, expect more bonds on central banks lenders to keep interest rates low, that liquidity chasing another markets. Leading to more general equity bubbling and driving a K shaped recovery.
Assuming pension funds break from bonds in en masse to a significant degree.
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, The Dismal Science reports