Savings & Retirement
Pensions Are Almost Fully Funded and Coming for Your Bonds
- Bank of America sees significant move into high-grade credit
- Average funded ratio for corporate pensions hit 98.8% in May
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A “massive rotation” into corporate bonds from equities may be on the horizon for U.S. pension funds as they become fully funded, according to strategists at Bank of America Corp.
Investment gains boosted the funded ratio of the 100 largest corporate plans to 98.8% in May, according to Milliman. That measure of defined benefit pension assets to liabilities has surged from 82% since July 2020, data from the risk management firm show.