Aha! Guess what my take is on this? First, it is very true and possible as these low-coupon-ers in investment grade face the first wave of rate increases and get pummeled to the ground very quickly. Second, pension assets need to shore up their return target shortfall and I will not be surprised if they turn to cross overs and high yield. Granted, a lot of columns have voiced how pension assets are diversifying into esoteric assets (timber, hedge funds, private equity etc) to prop up returns but these cannot show up as high percentages on conservative sheets whereas 5B and 4B names can, with the right pension consultant approval.
Expected High-Grade Bond Returns Under 2% For Next Decade – BNY – Income Investing – Barrons.com