Another Reason Pandemics Are the Retiree’s Enemy
April 7, 2020 by Allison Bell
COVID-19 is everyone’s enemy because it kills and frightens people, and because it has forced communities around the world to try to defend themselves by “sheltering in place.”
COVID-19 is the retiree’s enemy because the fatality right for older people who are hospitalized with the disease is very hard.
And COVID-19 could be the retiree’s enemy because it could be terrible for fixed annuity issuers, annuity benefits guarantee providers, bond fund managers, and anyone counting on income from a portfolio of bonds or other fixed-income investments.
Three economists — Òscar Jordà, Sanjay R. Singh and Alan Taylor — talk about the threat COVID-19 could pose to fixed-income investors in a new working paper published on the National Bureau of Economic Research website.
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