This Research paper is a joint effort between PIMCO and GIC, Singapore’s sovereign wealth fund. GIC authors Grace Qiu Tiantian Ph.D., Ding Li, and Zhihui Yap collaborated with PIMCO’s Josh Davis, German Ramirez, and Helen Guo to produce this report.

Assessing the impact of tax deferral and municipal bonds on retirement income generation.

We show that the return to a defensive equity portfolio can be decomposed into a hedging component and a component that seeks to generate returns.

We characterize the liquidity cost in corporate bonds, its relationship to bond characteristics, and the extent to which liquidity explains credit returns.