Koch Industries, Georgia Pacific, Junk Bonds Status
Anonymous News Network pointed this out yesterday. The initial concern was that the WI pension system was partially invested in this worthless set of bonds. That itself is concerning since Koch Industries clearly think Wisconsin is theirs for the taking and the fact that as an investment this huge company is pretty much worthless.
The Koch Industry Georgia Pacific credit bonds were rated “BB”, this is considered “Non investment grade speculative” by the various rating agencies.
Hopefully there is a way for the WI pension fund to eventually divest themselves from these Koch/Georgia Pacific investments without further losses. What is much more telling is that these credit bonds are junk bonds. Koch is a privately held company and the second largest corporation in the US. Yet they are unstable and financially a very bad investment. Now add into the mix all their destructive political actions and how much money they are dumping in to corrupt our democracy. This is starting to sound more like a hulk of a commercial entity that is rotten inside, moving outward. This huge company simply has, bad credit.
A wise person would be exploring what their pension or 401k is invested in. Most 401k plans will let you see what investments your money is in. You should be able to find what bond packages that might be in there. Then look up what that bond package has in it. If you discover Georgia Pacific in your bond investment product, it might be a good idea to switch to another bond package that doesn’t include such high risk junk. If it is a pension like the WI one, it would show as a line item in the pension itself. On a pension you may have complaining to whomever manages the pension or other official channels as your recourse.