How to Sell Risky Loans to a $1.9 Trillion Pension Pool: Slowly
- Australian pension funds have turned cautious on loan market
- Eaton Vance says investors putting money to work more slowly
A woman and a man look out towards the beach while sitting on a bench in Sydney, Australia.
Photographer: Bloomberg
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Australia’s pension funds, which oversee the equivalent of $1.9 trillion, have slowed down their investments in floating-rate loans after last year’s volatility, according to Eaton Vance Management.
“I think they are just a bit more cautious,” John Redding, a portfolio manager for the floating-rate loan strategy at the $423-billion U.S. money manager, said in an interview in Sydney. “I think they still see long term that this is an attractive place to have a strategic allocation, but at least right now they may be putting some additional money to work more slowly.’’