Legislators are hearing from hedge fund lobbyists and others who profit as these unregulated, high risk investment products gain acceptance.
Never before in the short history of pension asset management have such high-cost, high-risk investment products proliferated pensions.
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Nor have high-risk investment divisions been the only ones to get it wrong.
The firm also lost millions by moving her money into a high-risk investment portfolio without her permission, it has been alleged.
The financial collapse in 2008 and subsequent federal bailout plus a string of hearings on the lax oversight and high-risk investment practices that led to it stoked public anger.
"Clearly it brings a level of credibility to what is a high-risk investment profile, given how much work there is to be done and who they're competing against, " he says.
Indeed, private equity is not the only illiquid, high-risk, private investment that has gained the attention of securities regulators since the market collapse of 2008.
The assessment may seem obvious to anyone who understands the high-risk, high-reward world of technology investment and development.
Investors will want to be overweight below-market beta allocation, meaning investors will continue to move out of risk assets and into high end investment grade, defensive sectors like utilities and overall net long safety versus risk assets.
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With very high levels of investment there is more risk that some projects might turn out to be unprofitable and lead to business failures, job losses and perhaps serious problems for the banks which have lent money to finance the investment.
Since she is able to accept a high degree of risk, she has other attractive investment available.
For example, virtually every state pension that I know of has told locals, including participants and taxpayers, that investing in high-risk, high-fee, leveraged hedge funds is, in fact, a conservative investment strategy.
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The idea that high rates in and of themselves would discourage investment, risk-taking and productive effort was absolutely alien.
The High Court judges ruled that shareholders had taken a commercial risk with their investment.
Did the Point Judith II offering documents indicate this investment was highly speculative, illiquid and involved a high degree of risk?
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China's biggest state-owned lender by assets, set up a fund for customers to invest in high-end pu'er tea, marketing it as a low-risk investment.
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When gold or any other investment becomes too popular, it raises the risk of unsustainably high prices that could suddenly plummet, losing investors a lot of money very quickly.
But that is a highly uncertain process that exposes him to the risk of losing his investment to an outside bidder, Graham said, and the high court gave no assurance it will work.
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On the other hand, if the employer is asleep at the switch and simply outsources investment decision-making regarding the plan to, say, an insurance company, the investment options will almost certainly be wrapped in a high-cost, high-risk variable annuity.
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