SECURITIES

Connecticut’s Pension Fund Could Lose $25 Million: The state, a victim of risky and complex securities investments, has been selling off the investments but has already incurred losses of nearly $20 million, Treasurer Christopher Burnham’s office said. From 1991 to 1993, the fund bought $100 million in derivatives, securities whose value is linked to an underlying asset, such as a stock, bond or currency. Derivatives losses have forced Orange County into bankruptcy and wrought havoc with corporate profits and government budgets nationwide. The securities being sold were part of an $835-million portfolio that was managed by the treasurer’s office until this month. The rest of Connecticut’s $11-billion pension fund is in the hands of outside managers.