Pension Rebalancing Estimates and Allocation Update

Deutsche Bank estimates that strong Q2 2026 equity performance will trigger $44.4bn in fixed income buying and $88.3bn in equity selling by pension funds. This rebalancing is expected to support bond prices and contribute to a flattening bias in the yield curve.

Key Takeaways

• 1.Defined benefit pensions are estimated to buy $44.4bn in fixed income and sell $88.3bn in equities in Q2 2026 due to strong equity outperformance.
• 2.Public pension plans remain equity-heavy (71% equities), while private plans are balanced (50/50 split).

Table of Contents

• Rebalancing estimates for Q2 2026
• Model description
• Allocation update

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