What happens to state/local pensions if stocks ever go down?
| ivory offensive abode gaming laptop | 10/20/17 | | Duck-like aromatic haunted graveyard heaven | 10/20/17 | | milky effete regret range | 10/20/17 | | aphrodisiac well-lubricated kitchen | 10/20/17 | | Spectacular pit partner | 10/20/17 | | confused excitant temple | 10/20/17 | | Titillating field really tough guy | 10/20/17 | | Fragrant fuchsia wrinkle | 10/20/17 | | Pale location | 10/20/17 | | ivory offensive abode gaming laptop | 10/20/17 | | Pale location | 10/20/17 | | domesticated filthpig pervert | 10/20/17 | | heady gaping macaca | 10/20/17 | | Jet filthy site tattoo | 10/20/17 | | hairless associate hospital | 10/20/17 | | maize jew | 10/20/17 | | Fluffy mental disorder | 10/20/17 | | Fragrant fuchsia wrinkle | 10/20/17 |
Poast new message in this thread
Date: October 20th, 2017 8:47 PM Author: Pale location
pension funding is LOL but not sure what you're saying here
"but some of the bonds are issued by the municipalities themselves, and are tied into the equity market anyway"
If you're saying NYC bonds would lose money when the stock market falls because NYC's pension system owns NYC bonds, that's not correct.
(http://www.autoadmit.com/thread.php?thread_id=3770080&forum_id=2#34491059) |
|
Date: October 20th, 2017 9:01 PM Author: ivory offensive abode gaming laptop
the way i have seen it described is like a feedback loop.
eg:
-illinois pension buys IL bonds
-IL is able to pay on those bonds because a rising stock market eases its overall financial situation to an extent
-stock market falls
-IL edges closer to insolvency and cannot pay on its bonds
-IL pension fund holding equities and bonds gets nailed twice (unpaid bonds + sinking equity returns)
(http://www.autoadmit.com/thread.php?thread_id=3770080&forum_id=2#34491149) |
|
|