Global pension asset allocations and debt markets
Pension fund investors have been typically viewed as some of the most dependable investors in global bond markets. Their long-term obligations make government and corporate debt a natural fit: bonds offer predictable income which matches future retirement payments, and support relatively stable portfolios. However, that relationship is changing. Recent research has shown that demand shifts by pensions move asset prices and that they in turn respond to yield curves. For example, Aldunate et al. (2025) show that Chilean pension...
