US Pension Funds Face $33 Billion Equity Rebalancing After Bond Selloff

Institutional investors and pension funds are executing large-scale portfolio adjustments following a sharp government bond selloff and equities trading near record highs. Goldman Sachs estimates that US pension funds will offload approximately $33 billion in stocks to rebalance into fixed-income securities. The projected divestment ranks in the 98th percentile of Goldman Sachs' historical tracking data dating back to January 2000. Strategists from JP Morgan and BlackRock noted that institutional rebalancing is already visible across fund flows, exerting downward pressure on equity benchmarks while supporting bonds as the fourth quarter begins.