The Dallas Texas pension fund is in trouble – the mayor there is warning of 130% property tax hikes will be necessary to avoid a collapse of the pension fund .. it’s the unintended consequences of financial repression .. “Over the past year, the biggest casualty to emerge as a result of global NIRP (or close to it) monetary policy have been pension funds, which have had two choices: either suffer losses as yields on new fixed income investments barely cover (and in some case don’t), or scramble for duration (or outright risky investments like junk bonds and high beta stocks) .. So what do pension fund managers do when perpetually declining interest rates continue to drive their funded status lower and lower despite one’s return profile? Well, there is little choice: one has to move further and further out the yield curve in an attempt to match asset duration with that of one’s liabilities. That, or reach for the skies by buying the riskiest assets possible, and pray for a home run.”
LINK HERE to the article

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