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$1.2 Trillion Asset Manager: Forget Volatility, The Real Financial Timebomb Is Public Pensions

As we have reported over and over and over (and over, and over), public pensions are in deep, deep trouble.  In addition critical funding shortfalls (U.S. public pensions had just 71.8% of assets required to meet obligations as of June 2016), many of the country's largest pensions have completely unrealistic target rates-of-return of 7% on average. (Millman 2017 Public Pension Funding Study) And while interest rates and therefore the cost of leverage has been at historic lows, and markets at historic highs (until they underwent a brief Vol-fib cardiac arrest last week), the question is what happens when the music stops, liquidity dries up, and economic contraction besets (or catch up to) the markets?  David Hunt, CEO of $1.
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