Credit Suisse Look For U.S. Pension Re-bal From Equities To Bonds

Credit Suisse estimate U.S. pension fund month-end rebalancing flows to be as follows:

• "With the S&P 500 index up nearly 5.3% so far this month, the outperformance relative to the fixed income assets is expected to result in $10.8bn selling of U.S. equities from pension funds that rebalance on a monthly basis.
• International equities have also fared relatively well with Developed Markets up 5.0%. As a result, we estimate selling of $6.6bn in Developed Market equities as pension funds rebalance to target allocations. Emerging Market equities have not performed as strongly and returned 3.4%, leading to just $19mm in selling of Emerging Market equities.
• Within U.S. fixed income, we expect around $16bn of net buying as funds shift domestic equity gains into bonds to get back to target levels."