Central Banking

How the Brexit Outcome Impacts Institutional Investors

The United Kingdom’s choice to exit the European Union, combined with U.K. Prime Minister David Cameron resigning, and a plummeting pound sterling down at a 31-year low, sets the stage for potential opportunity for wealth funds and pension investors. JPMorgan Chase CEO Jamie Dimon sent a memo telling that foreign exchange volumes were at a […]


BREXIT Happens

   Breaking news. The United Kingdom will leave the European Union. The historic voter result sent the British pound falling to a 31-year low. The final tally is – Leave: 17,410,742 versus Remain: 16,141,241 Bank of England governor Mark Carney says the central bank is ready to provide £250 billion in extra funds. “The Bank […]


NBAD and First Gulf Bank Explore a Merger

National Bank of Abu Dhabi PJSC (NBAD) and First Gulf Bank PJSC (FGB) are in discussions regarding a potential merger, which would create the biggest lender in the Middle East. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SWFI First Read, June 16, 2016

Sharing Economy Company Airbnb Gets US$ 1 Billion Debt Facility San Francisco-based Airbnb Inc. has inked a mega debt deal with JPMorgan Chase & Co., Citigroup Inc., Bank of America Corporation, and Morgan Stanley for a US$ 1 billion debt facility. Airbnb was last valued at US$ 25.5 billion. Not Enough Public Data: Reason why […]


SWFI – Movers and Shakers – June 8, 2016

LGIM Appoints New COO, Ex-BlackRock EMEA Executive Hire Legal & General Investment Management (LGIM) hired Michael Marks to be the company’s chief operating officer. Marks will report to LGIM CEO Mark Zinkula and will officially join the company at the end of June. Previously, Marks spent 28 years at BlackRock. Most recently at BlackRock, he […]


No Rush to End Brazil’s Sovereign Fund

Brazilian Finance Minister Henrique de Campos Meirelles told the public there is no rush to end the country’s sovereign wealth fund. The previous week Meirelles indicated the wealth fund’s termination was to be immediate. However, this week held a different tune, Meirelles emphasized there is no immediate rush to sell shares of the Banco do […]


Øystein Olsen Gets Second Term as Norges Bank Governor

Øystein Olsen was appointed Governor of Norges Bank by the Council of State for a second six-year term on May 27, 2016. “I look forward to a new term as Central Bank Governor. Together with Norges Bank’s highly competent and engaged staff, I am delighted to undertake our important public tasks both within the central […]


Saudi Arabia Holds $116.8 Billion in U.S. Debt – March 2016

The U.S. Treasury released information regarding Saudi Arabia’s holdings of U.S. debt, after a Freedom of Information Act (FOIA) request. Saudi Arabia holds US$ 116.8 billion of U.S. debt as of March 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Follow the Money – Episode 8

This podcast covers activities during early May 2016. The main story covers Europe and ongoing events on the macro side. Also, I cover direct energy investment trends by sovereign wealth funds. There is talk about real assets near the end. Follow the Money Show is available on asset.tv on the Asset Owner Channel. EPISODE 8 […]


BlackRock NY

BlackRock Works with ECB to Stress Test Banks

BlackRock Solutions, the consulting unit of BlackRock, is working with the European Central Bank (ECB) to stress test a selection of 39 banks in the euro zone. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


private equity

DTCC-Euroclear Margin Utility Postponed till 2017

A margin service launched by Euroclear and The Depository Trust & Clearing Corporation (DTCC), two of the world’s biggest settlement firms, plans to go live in 2017, after experiencing several delays. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Norway SWF Withdrawals on Path to Exceed Original Estimate

Amid low oil prices and a challenging economy, Norway’s government has tapped its sovereign wealth fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


What is the Probability of Saudi Arabia Pulling Out of U.S. Assets?

The government of Saudi Arabia is a major foreign investor in the United States, especially in U.S. sovereign debt. They have been buying U.S. since their oil boom really took off. For example, in 1974, Saudi Arabian Monetary Agency (SAMA) purchased US$ 600 million worth of Federal National Mortgage Association (Fannie Mae) debentures through the […]


U.S. Asset Manager CEOs Criticize Negative Interest Rates

As the world economy continues to adjust and expand, asset managers are scratching their heads wondering if central banks went too far in driving into negative interest rate territory. Zero interest rate policy (ZIRP) and negative interest rate policy (NIRP) are central banking tools used to stimulate inflation. Simply put, negative interest rates transfer wealth […]


SWFI First Read, April 11, 2016

Oil Revenue Percentage Decrease for Iran’s NDF The amount of oil revenue flowing into Iran’s National Development Fund (NDF) will shrink from its current 30% to 20% in the current fiscal year. New York City Retirement Systems Appoints New Senior Investment Office for Private Equity New York City’s Bureau of Asset Management, which oversees the […]


SAFE Unit Played Stabilization Role in Chinese Equities

China’s State Administration of Foreign Exchange (SAFE) had provided a level of market support when it used vehicles to invest in mainland China’s A-share market. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Should Sovereign Wealth Follow Fundamentals or Central Bank Tunes?

Institutional investors are living in a low-return environment, in which quantitative easing (QE) policies and negative interest rates have puffed up financial markets. As sovereign funds navigate the world of listed equities, would it be prudent for them to follow company and country-economic fundamentals versus paying more attention to monetary policy? Monetary policy divergence appears […]


SWFI First Read, April 3, 2016

SunEdison Plans to File for Bankruptcy Protection The once darling of hedge funds and other institutional investors, solar-energy company SunEdison Inc., plans to file for bankruptcy protection in future weeks. SunEdison became one of the largest developers of renewable power plants in the United States by taking advantage of cheap funding and financial engineering by […]


doha sovereign wealth fund

Sheikh Hamad Backs Deutsche Bank’s Achleitner

Paul Achleitner, Deutsche Bank’s supervisory board chairman, is getting crucial support from one of the bank’s largest investors, the former Qatar Prime Minister Sheikh Hamad bin Jassim bin Jabr Al Thani. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


mexico

The Relationship Between Mexico and the Exchange Stabilization Fund (ESF)

Through the Gold Reserve Act of 1934, the U.S. Exchange Stabilization Fund (ESF) was formed. The U.S. Department of Treasury has used the ESF mostly to conduct foreign exchange intervention; stabilization loans have been a key secondary activity of the account. Over the decades, the ESF primarily conducted foreign exchange intervention and international loans in […]