Debt-hungry pensions seen having fewer bonds under tax bill

BANK OF AMERICA ESTIMATES THAT the supply of investment-grade bonds may reduce by as much as 17 percent next year due to changes proposed in the new tax bill. / BLOOMBERG FILE PHOTO/ANDREW HARRER
BANK OF AMERICA ESTIMATES THAT the supply of investment-grade bonds may reduce by as much as 17 percent next year due to changes proposed in the new tax bill. / BLOOMBERG FILE PHOTO/ANDREW HARRER
NEW YORK - The tax overhaul may cause a snag for debt-hungry pension funds. Now being refined by the House and Senate, the legislation will likely encourage companies to bring earnings that have been parked overseas back to the U.S. With all that extra cash, firms may borrow less, reducing the supply of investment-grade bonds by…

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