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Grantham calls for prudent investing, says low interest rates hurting every asset class
trueJeremy Grantham's firm is allocating assets “with great difficulty,” he said while speaking at the 2015 Morningstar Investment Conference in Chicago on Wednesday.
Fed not ready to raise rates
trueA slight uptick in job gains for the second quarter did not persuade members of the Federal Open Market Committee to raise the federal funds rate.
Making banks accountable
truePension funds, endowments, foundations and other asset owners — victims of manipulation of foreign exchange prices by four big banks and interest rate benchmarks by another — must demand reimbursement for their losses following the guilty pleas of the banks to criminal charges concerning the ...
Fed cites weakening economic data in reaffirming low rates
trueThe Federal Open Market Committee's decision to reaffirm the zero-to-0.25% target range for the federal funds rate at its April 28-29 meeting was based on weakening economic data, moving the path to higher rates further into the future, said meeting minutes released Wednesday.
SEC to propose that mutual funds disclose risk of rate rise
trueThe Securities and Exchange Commission is set to propose a requirement that mutual fund companies report how vulnerable their bond portfolios are to interest rate changes, said two people familiar with the matter.
Penbridge unveils risk transfer index
truePenbridge Advisors, a pension risk transfer advisory firm, has launched its Pension Risk Transfer index, which measures the typical premium an insurance company would charge a generic defined benefit plan for a group annuity buyout.
Moody's downgrades Chicago credit to junk on continuing pension concerns
trueMoody's Investors Service downgraded the city of Chicago's credit rating to Ba1 from Baa2 as a result of the Illinois Supreme Court's ruling May 8 that the Illinois pension reform law of 2013 is unconstitutional.
Yellen on the question of wages
trueFed Chair Janet Yellen has stressed the importance of wage inflation in influencing the Federal Open Market Committee's decision to start raising interest rates. April's average hourly earnings for all workers rose just 0.1% month-over-month and 2.2% year-over-year. She has said that she would like to see 3%-4% wage gains or be reasonably confident that they are heading in that direction. The three-month change in this measure of wages settled down to 1.8% (seasonally adjusted) during April from 3.6% during March. Nothing to get Ms. Yellen too excited, which seemed to get the stock market very excited on Friday.
Fed still assessing progress, sticks with low federal fund rates
trueMembers of the Federal Open Market Committee reaffirmed their view Wednesday that the current zero to 0.25% target range for the federal funds rate remains appropriate.
Milken conference: Real estate, housing seen as bright spots for U.S. in 2015
trueUncertainty about when the Federal Reserve will begin to consider raising interest rates is a continued distraction, but the U.S. does have some bright spots like real estate and housing, panelists at the Milken Institute Global Conference said Tuesday.
Corporate pension funding ratios fall in 1st quarter, reports say
trueFunding ratios of U.S. corporate defined benefit plans fell further in the first quarter of 2015, three new reports state, as liabilities rose faster than assets.
Monetary policy: It's all relative
trueWe have each separately made the case that asset pricing theory and investment practice for funding retirement should focus on how much income the member has in retirement instead of the amount of wealth at retirement. This applies whether the pension benefit is generated by a defined benefit plan ...
IACPM: Credit default concerns increase in North America, improve in Europe
trueCredit portfolio managers are growing more optimistic about the credit outlook in Europe, while growing more pessimistic about the outlook in North America
Big money sells in bond market as PIMCO cuts government holdings
truePIMCO is selling in the U.S. government debt market, while Morgan Stanley says yields will rise.
Corporate funding ratios dip in first quarter — 2 reports
trueThe aggregate funded status of S&P 500 companies with defined benefit plans fell 120 basis points to 82% in the first quarter as liability growth outpaced assets, Aon Hewitt said.