The Wall Street Journal reports on bond managers' continued chase for yield, in the continuing, historically low-rate environment, in which yields on even junk bonds have reached record lows not seen in over 30 years. In particular, the Journal notes that some fund managers have even started investing in unrated, illiquid bonds, increasing the risk to their portfolios given the potential for illiquidity in times of distress, while at least temporarily pumping up returns. [WSJ; September 5, 2021]

USA Gymnastics proposed a plan of reorganization that would include a $425 million settlement for the victims of Larry Nassar, the former national team doctor who has been convicted of sexually assaulting young gymnasts under the guise of medical treatment. According to the New York Times, while the survivors' committee pushed for even greater financial compensation for victims to cover the cost of things like medical care and therapy, it nonetheless signaled its support for the plan based on USA Gymnastics' commitment to reforming the organization to make its athletes safer. [NYT; August 31, 2021]

Reporting from Reuters indicates that the COVID-19 pandemic will cause the main U.S. Social Security trust fund reserves to be depleted in 2033, a year ahead of predictions made last year. After 2033, the Old Age and Survivors Trust Fund will only be able to pay 76% of scheduled retirement benefits. [Reuters; August 31, 2021]

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