In Brief: New Options Planned For Pension Funds

WASHINGTON -The Labor Department has proposed a rule to let pension funds invest in a wider range of securities backed by commercial mortgages, including senior as well as subordinated securities rated BBB or better.

The rule would amend the "underwriter exemptions" in the Employment Retirement Income Security Act of 1974.

Private pension funds cannot now buy subordinated tranches of such investment-grade securities.

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