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The article discusses the potential risks of investing in commercial-mortgage bonds in 2013 after the bonds showed evidence of a trend towards low yields. Topics include how high demand for commercial mortgage bonds increased prices while decreasing yields, what this trend means for commercial properties including shopping malls and hotels, and a discussion of the future of Two California Plaza in Los Angeles, California, a skyscraper which was foreclosed on in October 2012.

The article reports that a committee of the California Public Employees' Retirement System (Calpers) has recommended that the pension fund reduce its expected annual rate of return to 7.5%, down from 7.75%. If accepted, the new rate would require cities and counties in California to contribute more to the fund. Additional commentary is presented on the optimistic rates of return assumed by other pension funds in the U.S.

The article discusses concerns that public pension plans in the U.S. are assuming unreasonably high rates of return on their investments, typically about 8% per year. In Minnesota the legislature is considering whether to use a figure lower than the 8.5% return rate assumed by that state's pension funds. However, Joseph Dear of the California Public Employees' Retirement System says an assumption of 7.5% annually is reasonable.

The article discusses the temptation of public pension funds to reduce short-term pension costs to cities and towns by incorporating into their calculations rates of return on pension assets that may be too high. Special attention is paid to the California Public Employees' Retirement System, which cited the financial burden on localities as factoring into its decision to spurn an auditor's advice to lower its projected rate of return.

The article reports that the California Public Employees' Retirement System (Calpers) may lower from 7.75% the annual growth it expects to achieve on its investment portfolio. As a result, municipal governments in California may have to pay Calpers millions more each year in order to meet pension obligations. Chief executive Laurence Fink of BlackRock Inc. has told Calpers even a projected 6% annual return might be optimistic.

The article reports on the decision of the California Public Employees' Retirement System to maintain its assumed rate of investment return at 7.75%.

The article reports on the credit downgrading of the public fund Calpers from a triple-A rating to an Aa3 rating. It notes that the downgrade by Moody's Investors Service can be considered as a consequence to the decision of the public fund to aid local governments in California that are undergoing financial crisis. The downgrade comes after the public fund saw an increase in unfunded liabilities and posted a negative 24% return for the year ended June 2009. It adds that the credit-enhancement program of the fund will be affected by the downgrade.

The article reports that the fixed-income program of California Public Employees' Retirement System (Calpers) has taken the top 1% among its peers in the U.S. over a decade ending 2009 based on a report from the firm Wiltshire Consulting. However, the private-equity program of Calpers has declined to the bottom one percentile of its peers. Calpers has an overall return of 3.9% for a decade ending September. The bonus received by private-equity group head Leon Shahinian in 2008 was 224,189 dollars.

The article reports on the sale of about 1.1 billion dollars worth of taxable and tax-exempt debt from California in October 2009. It notes that the sale forms part of a 4.5 billion, long-term borrowing initiative from the state in which the tax-exempt bonds due in 2029 hold a top yield of 4.63%. A coupon of 3.50% to 3.75% for the shortest note is being marketed together with the 250 million dollars worth of taxable bonds. Lead underwriters for the taxable bonds are J.P. Morgan Chase & Co. and Goldman Sachs Group Inc.

This article reveals the plan of California to undertake a short-term borrowing of as much as 8.8 billion U.S. dollars. According to underwriters, the transaction is estimated to yield 1.5% for nine-month notes and 1.75% for 10-month notes. California Treasurer Bill Lockyer's office claims that orders for 5.26 billion U.S. dollars or 59.8% of the issue have been placed by individual investors.

The article reports that California's inability to agree on a budget has implication for investors in municipal bonds. There is a concern among investors that such development would lead to missed payments. In July 2009, there has been a decline in yields on benchmark California debt. Particular focus is given to the spread between California's long-dated state debt and Treasurys.

This article reports on the expected decline in the return of the California Public Employees' Retirement System (Calpers) for its latest fiscal year. The estimated decline for the fiscal year that ended June 20, 2009 is 55 billion U.S. dollars. Factors that affected the returns include the turbulent stock market, frozen credit markets and falling real-estate values. Marty Duffy of Moody's Investors Service points out the financial pressure facing Calpers.

The article reports on the end of California's selling of general obligation bonds. It states that about $2.6 billion of the funds will be used to restart public works projects halted in winter in 2008 as the state faced a cash shortfall due to a $42 billion budget deficit. The yields of the bonds are said to be between 3.20% and 6.10%.