Central Banking
ECB debt

Will Sovereign Funds Save European Banks?

European banking giants are being savaged in the markets in both bond and equity markets. In fact, Deutsche Bank’s share price is near a record low, closing at US$ 16.88 per share. Other banks facing falling share prices were UniCredit, Credit Suisse, BNP Paribas and Barclays. Deutsche Bank is led by John Cryan, a former [...]


Is Venezuela on the Cusp of Default?

Venezuela has been wrecked by an expansive socialist regime, soaring consumer prices, triple-digit inflation, product shortages, rampant inflation, low oil prices and a dwindling economy. Venezuela was an oil-rich country with a sovereign fund, but under its previous leader Hugo Chávez, the country spent billions to finance expensive social programs and infrastructure projects. Before oil [...]


Asian Infrastructure Investment Bank Makes Senior Appointments

Hong Ki-taek, the current chairman of the Korea Development Bank, has been selected as vice chief of the China-initiated Asian Infrastructure Investment Bank (AIIB). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


How Exposed is Norway’s Sovereign Fund to Japanese Government Bonds?

DATA – Norway’s GPFG Allocation to Japanese Government Bonds The Bank of Japan jilted institutional investors as it moved key interest rates into negative territory in specific instances. Specifically, the negative interest rates, a -0.1% rate, would affect a portion of financial institution’s deposits parked at the Bank of Japan. This “tax” could force banks [...]


GROWTH: Euroclear Reports Record Turnover

Over the past few years, Euroclear has expanded rapidly by forging partnerships, especially outside of Europe. Euroclear made significant moves augmenting its post-trade processing operations for funds into Asia. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


LEVELING OFF: Official Institutions Holding U.S. Treasuries

Is there a slowdown in foreign institutional investors buying and holding marketable U.S treasuries? Overseas creditors such as Japan and China have played an important role in financing the United States’ blossoming debt. The U.S. massively borrowed money to pull itself out of a nasty recession. Are the flows reversing? [ Content protected for Sovereign [...]


HSBC Bolsters Efforts to Win SWF Business

HSBC Global Asset Management is in competition from the likes of BlackRock, BNY Mellon, Northern Trust Asset Management and State Street Global Advisors when it comes winning business from official institutions such as central banks, finance ministries and sovereign funds. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view [...]


Is it Time for Sovereign Funds to Jump in?

Bank of America Merrill Lynch released their monthly fund manager survey which received results from 211 money managers overseeing US$ 610 billion in assets under management. The survey indicated asset managers are boosting their cash holdings, while reducing equity allocations. This is based from concerns about the global economy. At the same time, wealth funds [...]


New Details on Proposed Saudi Sovereign Fund

Saudi Arabia is getting closer to forming a new sovereign wealth fund to manage a portion of its oil wealth for diversification purposes. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


FREEDOM: Icelandic Pensions Can Begin to Invest Overseas Again

The Central Bank of Iceland relaxed the stringent capital controls that were in place for Icelandic pensions since 2008. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


China’s Foreign Exchange Experience the Largest Drop in December 2015

China’s massive pool of foreign reserves fell by a record US$ 107.9 billion to US$ 3.33 trillion in December 2015. This is according to data from the People’s Bank of China (PBoC). In November, reserves fell by US$ 87 billion. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view [...]


RECORD $23 Billion Loss for SNB in 2015

The Swiss National Bank (SNB) is posting an annual loss of 23 billion (US$ 23 billion) CHF for the 2015 financial year. 20 billion CHF in losses was attributed to foreign currency positions, while 4 billion CHF in losses was related to a decreased valuation on gold holdings. The net result from Swiss franc positions [...]


2015: Nigeria’s Foreign Reserves Fall Below $30 Billion

On December 30, 2015, the Central Bank of Nigeria’s (CBN) foreign exchange reserves stood at US$ 29.1 billion. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Abu Dhabi Investment Authority Gets Higher Quota Capacity for China

The Abu Dhabi Investment Authority (ADIA) was extended another US$ 1 billion in quota capacity from China’s State Administration of Foreign Exchange (SAFE) to US$ 2.5 billion in total. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Central Bank Roundup, December 26, 2015

Bank of Korea to Decrease Rate-Decision Meetings in 2017 The Bank of Korea is decreasing the amount of rate-decision meetings from 12 to 8. The change will occur in 2017. The reason is that the central bank wants more time to monitor the impact of monetary policy. However, the board of the Bank of Korea [...]


TAPPING: Brazil Withdraws Money from SWF

Brazil is miring in a deep recession after years of rapid economic growth. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Central Bank Roundup, December 22, 2015

National Bank of the Republic of Belarus Seeks to Stem FX Reserve Intervention in 2016 The National Bank of the Republic of Belarus plans to keep foreign exchange reserve interventions to a minimum in 2016 to avoid excessive strengthening of the country’s currency – the Belarussian rouble. At the first part of 2015, the central [...]


Fed Raises Rate, First Time Since 2006

The U.S Federal Reserve voted (10-0) to raise interest rates by a quarter point. This is the first rate increase in more than 9 years. The Federal Reserve raised the federal funds rate to a range of .25% to 0.5%. The “loose tightening” is a sign that the era of zero interest rate policy (ZIRP) [...]


Central Bank Roundup, December 3, 2015

Bank of Mexico Reports a Fall in Reserves Mexico’s foreign reserves dropped by US$ 355 million to US$ 171.88 billion last week according to the Bank of Mexico. Since the end of 2014, foreign reserves fell by US$ 21.35 billion. Bank of Korea Reports a Fall in Reserves Due to Dollar Strengthening [ Content protected [...]


Asian Sovereign Funds Try to Deal with Near Zero Interest Rates

Years have passed since the aftermath of the global financial crisis as central banks still prop up developed economies with quantitative easing (QE) policies. Institutional investors who placed bets on financial assets such as London real estate and U.S. equities, in general, clearly benefitted. The fragile recovery has prevented the Federal Reserve from lifting interest [...]