Machine Learning

The issuer of a security must ensure that its securities are owned by €œqualified institutional buyers (QIBs), which are defined as institutions that have $100 million or more in assets under management Furthermore, the issuer must ensure that at least half of the securities are held by QIBs https://www.investopedia.com/terms/q/qib.asp While a pension fund and insurance companies are not QIBs, they are not prohibited from owning the bonds However, if the issuer does not have at least 50% of its bonds owned by QIBs, it risks the downgrade of the bonds by the rating agency When pension funds buy bonds to rebalance their portfolio yields drop and likewise when they sell bonds yields climb. Falling yields bring in investors buying growth stock chasing profits. Pension funds hold about 125 billion dollars of bonds. https://www.cnbc.com/amp/2021/03/23/pension-funds-have-to-buy-bonds-to-rebalance-portfolios-and-that-might-be-good-for-stocks.html WHAT ARE THE BENEFITS OF PENSION FUNDS AND INSURANCE COMPANIES