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The funds' managers have generally been content to invest in safe assets such as bonds.
Only now are they looking to invest in safe assets, like prerefunded bonds secured by United States government obligations.
"Many pension funds and other long-term holders have to, for regulatory reasons, hold a fraction of their investments in safe assets.
He warns that people heading for retirement face a situation where real yields (return on investment in safe assets *minus* inflation) are almost zero.
When I read Gross and others, what I think is lurking underneath is a belief that capitalists are entitled to good returns on their capital, even if it's just parked in safe assets.
With investors stashing money in safe assets such as long-term bonds, the yield on the 10-year Treasury tumbled to 2.39percentt — its lowest level since December 2017.
Similar(51)
High reserve requirements forced banks to lock up much of the economy's savings in safe asset classes like government debt.
A reduction in safe asset supply relative to demand means that risk-free yields are lower, all else equal.
You turn to a clever adviser, who promises to tuck them all away in safer assets to bring you peace of mind.
Instead, your account should be rebalanced to about 60percentt stocks, the other 40 in safer assets, and all should be in index funds.
Remember, it's okay to accept some lower rates of return on the money you've invested in safer assets because, when opportunity strikes, you'll be ready to pounce.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com