The German Pension Shock That Should Make Americans Sit Up Eighteen German pension institutions have taken more than €2 billion in write-downs tied largely to U.S. commercial real estate. One fund reportedly saw nearly half its invested capital evaporate. Others remain stable—for now—but the pressure is obvious. On paper, this looks like a bad bet on office buildings in a post-remote-work world. In reality, it’s something much deeper. This is what happens when a decade of artificially low interest rates collides with reality. For years, central banks flooded the system with cheap money. Sovereign bonds—once the bedrock of pension portfolios—yielded next to nothing. So pension managers did what the system pushed them to do: they chased yield. Private debt. Commercial…
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