Kansas issued a $1 billion pension bond a year ago. How is it doing?
A year after Kansas issued a $1 billion bond to boost its public pension system by investing the proceeds, the state expects weak returns, though an official advised looking at performance over the long term.
Kansas received the bond proceeds on Aug. 20, 2015, and the state’s pension system, KPERS, invested the proceeds soon after. Final figures won’t be available for a few weeks, but KPERS director Alan Conroy indicated the return for the first year will be minimal.
“I’m guessing we’re going to probably be even or slightly positive. But that’s very, very preliminary,” Conroy said.
Conroy later predicted the investments probably earned enough during the first year to pay the annual debt service on the bond, but not much else. The most he suggested is “perhaps a slight positive” after the debt service is paid.
Read more: http://cjonline.com/news/2016-08-20/kansas-issued-1-billion-pension-bond-year-ago-how-it-doing