There are often regulations or other structures that govern what kind of assets a pension fund must buy. For example, California's pension fund has a 20 percent

There are often regulations or other structures that govern what kind of assets a pension fund must buy. For example, California's pension fund has a 20 percent fixed income investment target (note CA pension is has somewhat more flexibility than others in what they can do) https://www.calpers.ca.gov/page/investments/asset-classes/trust-level-portfolio-management https://www.calpers.ca.gov/page/investments/asset-classes/tr... There's some moral hazard here. The same people who regulate the fund also have the benefit of borrowing money cheaply.