Young American Adults Are Dying — and Not Just From Covid

Link: https://www.bloomberg.com/opinion/articles/2021-06-18/young-american-adults-are-dying-and-not-just-from-covid

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The observation that downward mortality trends have reversed in recent years for some groups of Americans is not new. Economists Ann Case and Angus Deaton helped start the discussion with their 2015 paper on rising mortality among middle-aged, non-Hispanic White Americans, and subsequently gave the phenomenon a resonant name: “deaths of despair.” Research has also identified those without college degrees and rural Americans as especially troubled.

In March, a National Academies of Sciences, Engineering, and Medicine committee summed up the current state of knowledge in a 475-page report on “High and Rising Mortality Rates Among Working-Age Adults.” Advances in overall life expectancy stalled in the U.S. after 2010 even while continuing in other wealthy countries, the committee summed up, attributing this mainly to (1) rising mortality due to external causes such as drugs, alcohol and suicide among those aged 25 through 64 and (2) a slowing in declines in deaths from internal causes, chiefly cardiovascular diseases.

Author(s): Justin Fox

Publication Date: 18 June 2021

Publication Site: Bloomberg

Death rates for young American adults rise due to overdoses, traffic accidents

Link: https://thepostmillennial.com/death-rates-for-young-american-adults-rise-due-to-overdoses-traffic-accidents

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Those aged 15-to-44 have seen fluctuating mortality rates since the 1950s, deviating from all other age groups that have seen steady decreases over the years. The age group’s mortality rate for the COVID-19 pandemic “pales in comparison” to the 1918 pandemic, according to Bloomberg.

“In March, a National Academies of Sciences, Engineering, and Medicine committee summed up their findings in a report titled ‘High and Rising Mortality Rates Among Working-Age Adults.’ Advances in overall life expectancy stalled in the US after 2010 even while continuing in other wealthy countries, the committee summed up, attributing this mainly to (1) rising mortality due to external causes such as drugs, alcohol and suicide among those aged 25 through 64 and (2) a slowing in declines in deaths from internal causes, chiefly cardiovascular diseases,” wrote Bloomberg.

Author(s): Hannah Nightingale

Publication Date: 18 June 2021

Publication Site: The Post Millennial

Not Even Bond Traders Can Predict the Future

Link: https://www.bloomberg.com/opinion/articles/2021-06-18/bond-traders-can-t-predict-inflation-any-better-than-anyone-else

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Historically, bond yields have not been very good at predicting inflation.

In the last 70 years, bond yields rarely rose ahead of inflation, going up only after inflation takes hold.  One study indicated that past inflation trends were a better predictor of bond rates than what future inflation turned out to be.

Does this mean bond traders are wrong? Not necessarily. It may just reflect that inflation is unpredictable and bond traders don’t know any more about the future than the rest of us. All they have is the past data and current prices to make their predictions, too. So when inflation suddenly spikes — as it has in the past — bond traders are as surprised as everyone else.

Author(s): Allison Schrager

Publication Date: 18 June 2021

Publication Site: Bloomberg

Treasury Rescue Won’t Bail Out Chicago, New Jersey From Debt

Link: https://news.yahoo.com/treasury-lifeline-won-t-bail-190632365.html

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(Bloomberg) — The U.S. Treasury Department is sending a message to states and cities that the billions in aid from the American Rescue Plan should provide relief to residents, not their governments’ debt burdens.

The department on Monday released guidance on how state and local governments can use $350 billion in funding from President Joe Biden’s $1.9 trillion rescue package. The funds are intended to help states and local governments make up for lost revenue, curb the pandemic, bolster economic recoveries, and support industries hit by Covid-19 restrictions. In a surprise to some, these funds can’t be used for debt payments, a potential complication for fiscally stressed governments that had already etched out plans to pay off loans.

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Illinois Governor J.B. Pritzker had suggested using some of the state’s $8.1 billion in aid to repay the outstanding $3.2 billion in debt from the Federal Reserve’s emergency lending facility and to reduce unpaid bills. Illinois was the only state to borrow from the Fed last year, tapping it twice. On Tuesday, Jordan Abudayyeh, a Pritzker spokesperson, said the administration is “seeking clarification” from the Treasury on whether Illinois can use the aid to pay back the loan from the Fed.

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The rule could also affect New Jersey, which sold nearly $3.7 billion of bonds last year to cover its shortfall during the pandemic. Assembly Republican Leader Jon Bramnick, a Republican, in April had called for Governor Phil Murphy, a Democrat, to use some of the federal aid to pay down the state’s debt.

Author(s): Shruti Date Singh, Amanda Albright

Publication Date: 11 May 2021

Publication Site: Yahoo Finance

Social Security Sees Slowdown in Retiree Rolls Amid Covid Deaths

Link: https://www.bloomberg.com/news/articles/2021-05-03/social-security-sees-slowdown-in-retiree-rolls-amid-covid-deaths

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The rate of growth in retired Americans who collect Social Security has slowed down sharply, and the drop may be due in part to the disproportionate number of deaths from Covid-19 among the elderly.

The number of people who received retirement benefits from the Social Security Administration rose 900,000 to 46.4 million in March, the smallest year-over-year gain since April 2009.

While the Office of the Chief Actuary at the government agency said it is still too early to assess the impact from Covid-19, the year-over-year change appears to reflect excess deaths. About 447,000 people who died from the virus were 65 or older, according to data from the Centers for Disease Control and Prevention, or about 80% of total deaths.

Author(s): Alexandre Tanzi

Publication Date: 3 May 2021

Publication Site: Bloomberg

China to raise retirement age in stages – state researcher

Link: https://www.pionline.com/economy/china-raise-retirement-age-stages-state-researcher

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China plans to raise retirement ages gradually over a number of years instead of in a drastic one-time change, a government researcher said last week, without providing any detail on when the changes might start.

When the retirement age starts being lifted, it will be by a few months every year, or by a month every few months, according to Jin Weigang, head of the Chinese Academy of Labor and Social Security under the Ministry of Human Resources and Social Security. Mr. Jin didn’t say when the changes would begin, but the current five-year plan calls for “raising the retirement age in a phased manner.”

“People in different age groups will be retiring at different ages,” Mr. Jin said in an interview with the state-run Xinhua News Agency published March 13. “For example, in the first year of the policy’s implementation, female workers who were originally scheduled to retire at 50 will retire one month or a few months after 50.”

Author(s): Bloomberg

Publication Date: 15 March 2021

Publication Site: Pensions & Investments

GPIF treads water as ESG picks up pace

Link: https://www.pionline.com/pension-funds/gpif-treads-water-esg-picks-pace

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The world’s largest pension fund had charted a course for sustainable investing, but the Government Pension Investment Fund, Tokyo, is now treading water.

After taking the helm of the world’s biggest pension fund as CIO in 2015, Hiromichi Mizuno sought to turn GPIF into a fund that — as one Harvard Business Review article put it — tried to “change the world” through its approach to environmental, social and governance investing.

However, the $1.63 trillion fund — constrained by stricter legal restraints than its peers — has largely been quiet on impact investing since Mr. Mizuno was succeeded in April 2020 by Eiji Ueda. At the same time, the COVID-19 pandemic has accelerated the global push toward ESG themes and GPIF’s peers around the world have cut fossil-fuel investments and threatened to pull funds from firms that fail to meet ethical standards.

Author(s): Bloomberg

Publication Date: 12 April 2021

Publication Site: Pensions & Investments

Australia Pensions Ink Deal to Create $155 Billion Fund

Link: https://finance.yahoo.com/news/australian-155-billion-pension-merger-222035563.html

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Two of Australia’s largest pension funds moved a step closer to creating a A$200 billion ($155 billion) giant as the world’s fourth-biggest pension pot consolidates.

QSuper and Sunsuper Pty. have signed a deal to merge, the two funds said in a joint statement Monday. The Brisbane-based funds will combine by September to create the country’s second-largest pension fund.

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QSuper has about A$120 billion in funds under administration and looks after the retirement savings for Queensland state government employees. Sunsuper has about A$80 billion in savings for employees of corporations including Unilever Plc and Virgin Australia.

Author(s): Matthew Burgess, Bloomberg

Publication Date: 14 March 2021

Publication Site: Yahoo Finance

Near-Junk Illinois Set to Sell Bonds With Stimulus as ‘Tailwind’

Link: https://www.msn.com/en-us/money/markets/near-junk-illinois-set-to-sell-bonds-with-stimulus-as-e2-80-98tailwind-e2-80-99/

Excerpt:

Illinois plans to tap the municipal-bond market next week, just days after passage of President Joe Biden’s $1.9 trillion stimulus plan promises to help the lowest-rated state with some near-term financial stress.

The state is expected to sell $1.26 billion tax-exempt bonds on March 17. That follows S&P Global Ratings’s decision to pull Illinois back from the brink of a junk rating by lifting the outlook on the state’s BBB- rating to stable from negative on Tuesday, citing more federal aid and the start of an economic recovery. The proceeds from the sale will be for capital projects, accelerated pension payments and refunding.

Author(s): Shruti Date Singh

Publication Date: 10 March 2021

Publication Site: MSN (Bloomberg)

Citi Blocks Firms With Errant Revlon Payout From Debt Deals

Link: https://www.bloomberg.com/news/articles/2021-03-09/citi-blocks-firms-that-kept-errant-revlon-payout-from-debt-deals

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Citigroup Inc. is punishing investment firms that kept payments the bank accidentally sent to Revlon Inc. lenders by blocking them from certain new debt offerings led by the bank, according to people with knowledge of the matter.

The bank is choosing to not invite these money managers, who hung on to over $500 million, to its new-issue debt deals, the people said, asking not to be identified discussing a private matter. Firms targeted include Brigade Capital ManagementHPS Investment Partners and Symphony Asset Management, the people said.

These firms and others tangled in a lawsuit with Citigroup can still participate if an issuer specifically requests for them to be able to join their offering, one of the people added.

Author(s): Katherine Doherty, Paula Seligson, Jennifer Surane

Publication Date: 10 March 2021

Publication Site: Bloomberg

Libor Enters ‘Final Chapter’ as Global Regulators Set End Dates

Link: https://www.bloomberg.com/news/articles/2021-03-05/libor-s-end-now-within-sight-as-u-k-s-fca-sets-final-dates

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Regulators kicked off the final countdown for the London interbank offered rate Friday, ordering banks to be ready for the end of a much maligned benchmark that’s been at the heart of the international financial system for decades.

The U.K. Financial Conduct Authority confirmed that the final fixings for most rates will take place at end of this year, with just a few key dollar tenors set to linger for a further 18 months.

Author(s): William Shaw, Silla Brush, Alex Harris

Publication Date: 5 March 2021

Publication Site: Bloomberg

The Biggest Business Fails of All Time

Link: https://moneywise.com/a/the-biggest-business-fails-of-all-time

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3. Spreadsheet error costs JPMorgan $3.1 billion

You might recall the “London Whale” incident in 2012, when notorious trader Bruno Iksil — whose other monikers include the White Whale and even Voldemort — conducted a series of credit default swaps that cost JPMorgan Chase $6.2 billion.

What you might not know, however, is that half the loss was incurred by a simple Excel spreadsheet error.

Bloomberg reports that the Excel model, which relied heavily on copy and pasting of information, accidentally “underestimated risk by half.”

Author(s): Serah Louis

Publication Date: 1 March 2021

Publication Site: MoneyWise