The Treasury said this week that it will borrow (and spend) about $3 trillion this quarter, to cover its stimulus promises. Where does that money come from and where does it go? 'The capital is going from one pocket to another,' explains Vanguard's active Treasury fund manager, who expects the stimulus to be withdrawn in 2022.
'The Fed’s aggressive actions have benefited the markets in the short term. Longer term, however, we think there will be downgrades, defaults, and bankruptcies, particularly among companies that came into the downturn with high leverage,' writes the head of fixed income at the asset manager William Blair.
Economic growth attributable to public pensions generated approximately $341.4 billion in state and local revenues. Adjusting this figure for taxpayer contribution $162 billion yields pensions’ net positive impact of $179.4 billion, says NCPERS, which advocates for public pensions.
'Advisors purchasing a mutual fund as a long-term holding may be overpaying and would be better served in an ETF. Investors who do not need intra-day liquidity but may need to sell at a specific date may well be best served by the mutual fund,' writes a Cerulli analyst.
The three-year crediting rate limits are 75% and 80%, respectively, according to a May 4 product rate sheet on the Allianz Index Advantage product. The current rates expire June 1, 2020.