Pensions Seek Magic 8% With Neglected Junk Debt: Credit Markets
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U.S. pension-plan managers are pouring cash into debt from the smallest speculative-grade borrowers, seeking to meet targeted 8 percent returns at a time when average yields are at about record lows.
California’s San Bernardino County Employees’ Retirement Association, which oversees $6.1 billion, is poised to recommend investing in a fund from Tennenbaum Capital Partners LLC that exclusively focuses on lending to smaller companies. The New York State Common Retirement Fund, with about $150.3 billion of assets, committed money to funds from Brightwood Capital Advisors LLC and Monroe Capital Partners LP this year.