Pension Funds High Risk Strategy For Extra Yield

US pension funds are looking for new ways to generate yield in a zero interest and negative interest rate world for their members / investors.

Similar to 2006 they have decided to  sell insurance on the US stock market in the form of put options on the US stock market to collect option premiums, when the market is at all time highs.

Selling put options is great to generate monthly premiums, however if there is a sudden sharp correction in the US stock market these pension funds are in for large losses.  

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