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Main street pensions take Wall Street gamble by investing borrowed money

NOVEMBER 17, 2021 | by Heather Gillers | THE WALL STREET JOURNAL

By Heather Gillers, from September 2021, includes “Many U.S. towns and cities are years behind on their pension obligations. Now some are effectively planning to borrow money and put it into stocks and other investments in a bid to catch up. … Pension obligation bonds can backfire. If investments don’t perform as expected and returns fall below the bond interest rate, the city can end up paying even more than if it hadn’t borrowed.”

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