tag:blogger.com,1999:blog-7334408760351487944.post1241242771278543766..comments2023-11-12T06:43:00.060-05:00Comments on Notes on Social Security Reform: New issue brief: "Pension Obligation Bonds: Financial Crisis Exposes Risks"Andrew G. Biggshttp://www.blogger.com/profile/16617460431856611873noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7334408760351487944.post-43586210289548849312010-01-22T21:53:14.055-05:002010-01-22T21:53:14.055-05:00Borrow at a low rate to invest at a higher rate. W...Borrow at a low rate to invest at a higher rate. What could make more sense?<br /><br />The S&Ls did it, worked for them!<br /><br />General Motors did exactly this a couple years ago -- floated a mega-billion bond issue to fund up its pension liabilities, figuring stock market returns were sure to beat the interest rate it had to pay on the bonds.<br /><br />How'd the stock market do last year? How'd GM do? How'd GM's bonds do?JGhttps://www.blogger.com/profile/11164150812219689611noreply@blogger.com