Pension Outflows This Month Will Be Largest Ever Recorded: Morgan Stanley

Pension funds are set to sell an estimated $70 billion in equities and $8 billion of commodities over January month-end as they rebalance their portfolios according to the latest reading from the Morgan Stanley QDS Pension Rebalancing Model. The volume of pension rebalancing expected to occur this month is estimated to be one of the largest on record according to analysis from three banks, Morgan Stanley, Goldman Sachs and Credit Suisse. [klarman]   “Estimated flows are spread over the next two weeks. As a percentage of asset allocation this is a 79bps rebalance from equities, which is at the 7th percentile since…