ETFs and the Present Danger to Capital Formation
Prepared Testimony by Harold Bradley and Robert E. Litan
Before the United States Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investments
ETFs have increasingly distorted the role of equities
markets in capital formation, while posing systemic risks from potential
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The Geese Are Beginning to Be Slaughtered
Bud Burrell, Chris Clair
HedgeWorld cited by Sanity Check via Wayback, 12 April 2006
U.S. defined benefit pension plans have been upping their allocations to alternative investments, including hedge funds, in recent years, helping boost hedge fund assets to above the $1 trillion mark.
But defined benefit plans, particularly in the corporate world, are facing big problems. They are almost universally underfunded, they face a future with more retirees than ever thanks to longer life expectancies and younger retirement ages, and those retirees are receiving better benefits than in the past. A number of companies, including IBM Corp., Verizon Communications Inc., Motorola Inc., and Lockheed Martin Corp., have announced they are freezing their defined benefit plans, the first step toward eliminating them altogether.
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