Bloomberg.com, in a very interesting story about the problems facing public pension funds, reports the following (link via Drudge):
The Missouri State Employees’ Retirement System invested $25 million in half the equity portion of the BlackRock Senior Income Series 2006 collateralized loan obligation, managed by New York-based BlackRock Inc. Moody’s last month cut ratings on parts of the debt, saying a drop in value of the underlying collateral may cause “an event of default.”
Chris Rackers, the manager of investment policy and communication for the Missouri fund, didn’t return calls seeking comment.
This seems somewhat frightening. It also seems a good opportunity to plug our recent study of Missouri’s pension funds by the other Richard Dreyfuss.
