Drop in Local Bond Sales to Cover Pension Obligations

What is happening? There has been a 70% year over year drop in pension obligation bonds because the cost of the bonds is too high.

Why is this important? “This year’s 13% decline in stocks, coupled with the Federal Reserve raising rates to combat inflation, make bond sales much riskier for pensions.”

How will this be important? Let’s not lose sight that in 2021, pension bond sales were 123% above previous year sales.

Bloomberg | Bond Sales Get Too Expensive Just When Public Pensions Need Them