Detroit Municipal Bonds:
Who’ll Share the Pain?

Joseph Rosenblum (pictured) and Neene Jenkins

It could be several weeks or a few months. But before long, the city of Detroit is likely to default on some of its outstanding bonds and possibly file for Chapter 9 bankruptcy protection. It would be a historic bankruptcy and is sure to create uncertainty in the municipal bond market. Some types of debt will fare better than others in the final restructuring. (more…)


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DC Solutions: Adding Global Bonds to Target-Date Funds

By Alison Martier and Seth J. Masters

Within US defined contribution (DC) target-date funds (TDFs), whether we’re considering customized TDFs for larger plans or packaged solutions for smaller plans, our research shows that having a bond allocation that is not US-centric can lead to better outcomes and enhance the effectiveness of the glide path. (more…)


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A Guide for Globalizing DC Core Menus

By Alison Martier and Seth J. Masters

At a time when plans are seeking to control risk and enhance returns, hedged global bonds can help improve outcomes for US defined contribution (DC) investors. Hedged global bonds have delivered better risk-adjusted results over time than US bonds. So how do we recommend plan sponsors incorporate global bonds, and what is the ideal allocation in core menus? (more…)


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