Pension funds and other institutional investors have struggled to produce the returns they need to satisfy their obligations. To boost returns, they've turned to a new, risky strategy involving leverage that could eventually backfire, leaving pension funds facing shortfalls in meeting their obligations to pensioners.
In the following video, Fool markets analyst Mike Klesta talks with longtime Fool contributor and financial planner Dan Caplinger about this strategy and what it means to you and your money.
Annaly Capital has used a similarly leveraged strategy to produce huge dividends, but can investors count on that payout sticking around? With the Federal Reserve's recent moves, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!