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Comment on IBM to end 401(k) match, offering a hybrid plan

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AIUI they bought a ton of treasury bonds and are using that as the backing of this transition and that's how they can promise the 6% return or whatever it is for the initial years.

Theoretically if the market tanks hard those 401ks will drop like a rock and the bonds won't so this could be a hedge to protect their employees but to the employees it probably looks really scary.

Theoretically if the market tanks hard those 401ks will drop like a rock and the bonds won't

Most (all?) 401k plans allow you to invest in bonds.

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