Research Roundup

Enjoy these summaries of six recent research papers that illuminate issues in retirement today. We include work by leading retirement researchers at Harvard Law School, schools of business at Stanford and Duke Universities, and other major academic institutions.

Bermuda Short-Sellers

Short-sellers, including hedge funds, sense that the bespoke loans that asset managers have sold to life insurers could fail in the next financial crisis. They may not know it, but the shorts are responding in part to the growth of what RIJ calls the 'Bermuda Triangle' strategy.

CITs: Private Credit’s Pathway into 401(k) Plans

'Everybody—all the asset managers—are trying to pick CIT dance partners so that they can have product in 401(k) plans,' said Chris Randall at SEI Trust Company. CITs—less regulated, cheaper, and more easily-customized than mutual funds—now house 42% of 401(k) investments.
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News

U.S. spends $3.4 trillion in 11 months

Federal outlays through August totaled $3.4 trillion, up 2% from the same period last year. Receipts in the first 11 months totaled $2.2 trillion, up $126 billion from the same period last year. (Federal fiscal year ends Sept. 30, 2012.)

The Bucket

Brief or late-breaking items from New York Life, Phoenix Companies, Strategic Insight, BlackRock, DST Systems Inc., AXA Equitable Life, and Principal Financial.

Fed pledges action until economy shows gains

The Fed also acknowledged its limits. “Monetary policy, particularly in the current circumstances, cannot cure all economic ills,” the Fed chairman, Ben S. Bernanke, said at a news conference.