Pension funds have traditionally invested in global bond markets which offer predictable income and support stable portfolios. This column documents a recent shift in pension investing away from fixed-income securities and towards riskier and less liquid assets. A search for yield is an important reason for this change, along with the transition from defined benefit to defined contribution pension systems. This transformation presents opportunities for higher returns and more diversification, but also exposes bond markets and pension funds to more risk during volatile periods.



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