Key Q1 Takeaways:
- The rally in risky assets continued into Q1 as animal spirits prevailed over yet-to-materialize policy changes.
- Pension plan sponsors are benefitting from higher rates and higher equities. They are peeved however, by increasing PBGC premiums, which may lead to increased contributions.
- Greater potential demand for long corporate bonds from higher expected contributions can provide support to this asset class over the next few months.
- Investors are generally concerned about valuation levels across asset classes.
- Changes in tax policy should bring secular changes to corporate capital structures.
Download PDF for full article