Rock-bottom yields are making it harder than ever for pensions, endowments and other money managers to hit the targets they need to meet their long-term obligations. As a result, fund managers are now shifting fixed-income allocations to assets once considered on the fringes of conventional investing -- things like whole-business securitizations, entertainment royalties and catastrophe bonds.
“The massive rally in all asset prices is destroying their potential to provide investors a return comparable to those they have gotten used to in recent decades,” JPMorgan Chase & Co. strategists led by Stephen Dulake wrote in a report last month.