Tax Wrinkle Spurs Pension Funds to Buy More Treasurys

U.S. companies are funneling extra money into their pension funds to take advantage of temporary tax savings, moves that are helping suppress yields on long-term Treasurys. S&P 500 companies are contributing to pension plans this year at a pace expected to nearly match 2017’s level, which at $63 billion was the most since 2003, according to Goldman Sachs Asset Management. Last year’s contributions were spurred in part by companies anticipating changes in the U.S. tax-code overhaul.

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By Eisen, Ben; and Kruger, Daniel, posted on Thursday July 5, 2018
Tax Reform

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