PBGC takes the bond route

After suffering its worst loss in history, the Pension Benefit Guaranty Corporation is undertaking its first review of its investment strategy in a decade and considering switching its equity investments into bonds.

Equity investment was a good idea in the boom years of the 1990s, but now with corporate profits hitting the wall, many companies are having to dig deep into their own pockets. “If you invest in equities, there is a trade-off,” says Steven Kandarian, executive director at