CalSTRS Would Consider Ultra-Long Bonds, CIO Ailman Says

The video discusses how CalPERS has benefited from the rally in fixed income, particularly U.S. government bonds, due to negative rates in Europe and Asia. It also explores the potential issuance of 100-year bonds by the U.S. government, which could be attractive to insurance companies and corporate plans due to low interest rates, though less so for pension plans.

What has been a significant factor driving the returns of 30-year government bonds?

• Increased government spending

• Rising stock market

• Negative rates in Europe and Asia

• High inflation rates

Why is the US government considering issuing 100-year bonds?

• To reduce national debt

• To take advantage of low interest rates

• To increase short-term liquidity

• To compete with European markets

Who is likely to find 100-year bonds more appealing?

• Pension plans

• Corporate plans and insurance companies

• Individual investors

• Foreign governments

What is a challenge associated with 100-year bonds?

• High interest rates

• Short duration

• Low yield

• High trading volume

What is the expected trading volume for 100-year bonds compared to 30-year bonds?

• Unpredictable

• Lower than 30-year bonds

• Similar to 30-year bonds

• Higher than 30-year bonds