4min chapter

Bankless cover image

Did Macro Kill Crypto? with MacroAlf

Bankless

CHAPTER

Pension Funds Are Natural Buyers of Bonds

The bond market is often a decent allocation of these guys. There are structural reasons why. By regulation, banks need to own liquid assets. The second, third layers of the pyramid are credit corporate bonds and equities. They are riskier trunches of this pyramid that just discussed. When the base shake, obviously what these investors will do is they will be forced, mechanically forced to divest the riskier investment at the top.

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