Biden’s Pension Rescue Seen as Bigger Help for Corporate Bonds
- Rules may move more money into credit than previously thought
- PBGC may consider allowing investments in other securities
President Joe Biden
Photographer: Sarah Silbiger/UPI/Bloomberg
This article is for subscribers only.
U.S. President Joe Biden’s planned pension rescue could result in even more money being shunted into investment-grade corporate bonds than previously thought, according to Citigroup Inc. strategists.
The Pension Benefit Guaranty Corp., which insures pensions, issued rules on Friday for bailout money for multi-employer plans that are severely underfunded. These plans can apply for rescue funds as part of the $1.9 trillion pandemic-relief bill signed into law in March.