Central Banking

Friday SWFI News Roundup, March 27, 2015

TRS Delivers 8.51% for 2014 Return The Teacher Retirement System of Texas posted an 8.51% return for 2014, beating its policy index by 0.04%. The highest performing asset class for the pension system was stable value which posted 21.4%. Real return asset class posted 10.2%, followed by risk parity at 8.1% in return. Directional hedge [...]

YELLEN: Rate Increases Cannot be Ruled Out

Federal Reserve Chair Janet Yellen calmly stated at a press conference that a rate increase in June cannot be ruled out. Yellen added for the Federal Reserve to raise rates, there must be “further improvement in labor markets,” and inflation will need to go back to its 2% target over the medium term. The Federal [...]

March 18th – Federal Reserve Puts Out FOMC Statement

See the press release: Federal Reserve Below is the FOMC statement on March 18, 2015. Release Date: March 18, 2015 For immediate release Information received since the Federal Open Market Committee met in January suggests that economic growth has moderated somewhat. Labor market conditions have improved further, with strong job gains and a lower unemployment [...]

ECB debt

European Central Bank Hires Deloitte for Services on Bank’s Pension Scheme

The European Central Bank (ECB) has hired Deloitte Consulting for actuarial services with regard to the central bank’s pension scheme. The search was initiated in July 2014.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Foreign Institutional Investors Fret Over VTB Bank

VTB Bank, Russia’s state-controlled bank and second biggest lender, faced a drastic loss in profit margin in 2014 and could take sustained losses in 2015 due to Russia’s high interest rates and ongoing sanctions with the West. Along with its larger rival Sberbank, the geopolitical situation in Eastern Ukraine has taken a toll on Russian [...]

See the 23 Central Banks That Have Eased Since Jan 2015

The U.S. dollar is getting stronger giving Wall Street chills. Asian exporting nations, some with sovereign wealth funds, are turning on their monetary spigots by cutting key rates. In 2014, Asian powerhouse China, which is a large trading partner to many countries in the region, has economically expanded the least since 1990. Head of South [...]

Global Banks Search for McKinsey in CEO Resume

UPDATE: Tidjane Thiam has been named the new CEO of Zurich-based Credit Suisse Group AG – both companies have confirmed. Current Credit Suisse CEO Brady Dougan will step down in June 2015. Corporate climbers take notice, as global banks become increasingly complex with regulatory rules and lower profitability in traditional areas of finance – corporate [...]

asset allocation

Investors Pursue Debt Recovery Against Novo Banco and Bank of Portugal

Institutional investors in Oak Finance, the vehicle that lent money to now-defunct Lisbon-based Banco Espírito Santo, are moving forward with debt recovery proceedings. The investor group filed debt recovery proceedings in English court against Novo Banco, the new bank entity that arose from Banco Espírito Santo. In addition, the investor group plans to file proceedings [...]

People’s Bank of China Names Two New Deputy Governors

China’s central bank is experiencing some senior executive shuffles. The People’s Bank of China named two new deputy governors. Guo Qingping was internally promoted from assistant governor to deputy governor. The People’s Bank of China hired Fan Yifei who comes from sovereign wealth fund China Investment Corporation (CIC) where he was an executive. At one [...]

Is Libya’s Sovereign Wealth Fund Safe?

ISIS, also known as Islamic State of Iraq and the Levant or Daesh, has made inroads into war torn Libya. Car bombs plague eastern Libya. As violence continues to spread in Libya, one can wonder, who will be in control of Libya’s massive sovereign wealth fund, the Libyan Investment Authority (LIA)? A number of factions [...]

AMBITIOUS DREAMS: China’s Silk Road Fund

Analyzing demographics, technology and GDP growth, China is economically positioning itself for the next decade. In October 2014, China-backed Asian Infrastructure Investment Bank (AIIB) was revealed to the public, a possible counterweight to the Asian Development Bank (ADB) and World Bank. The AIIB is working on its articles of agreement, targeted for completion by the [...]

Sovereign Wealth Fund Takes Legal Action Against Banco de Portugal Over Costly Debt Transfer

On July 3, 2014, New Zealand Superannuation Fund (NZSF) invested US$ 150 million in notes issued by Oak Finance Luxembourg SA. The vehicle Oak Finance was arranged by Goldman Sachs as an independent entity to assist in the financing of trade transactions being made by Lisbon-based Banco Espírito Santo. For example, one trade deal was [...]

Friday SWFI News Roundup, February 20, 2015

NAMA Awards Cushman & Wakefield Corporate Finance NPL Sales Mandate Ireland’s National Asset Management Agency (NAMA) has awarded Cushman & Wakefield Corporate Finance the mandate to sell a portfolio of non-performing loans with a face value of €8.4 billion. The portfolio of non-performing loans consists of approximately 500 borrowers in both residential and commercial properties. [...]

Euroclear Helps With the Internationalization of Peru’s Capital Markets

Brussels-based Euroclear and Peru’s Ministry of Economy and Finance have signed a memorandum of understanding (MoU) that commits both parties to form a new international link (i-link) for Peru. Essentially, Peruvian issuers will be able to tap into the international liquidity pool provided by Euroclear’s massive investor client base. The MoU permits Peruvian investors to [...]

ECB debt

Waiver Suspension, ECB Takes Stance on Greek Debt

The European Central Bank (ECB), in a statement, took a firm stance that it will no longer accept junk-rated Greek government bonds as collateral for lending capital to commercial banks. Greek banks can still get funds through a program called emergency liquidity assistance, or ELA. ELA is more costly for Greek banks and loans stay [...]

Preventing GREXIT: Restructuring a Major Possibility

Appointed by Greek Finance Minister Yanis Varoufakis, investment bank Lazard won the challenging assignment of advising the Greek government on managing sovereign debt issues. By hiring Lazard, a firm with extensive history on sovereign debt restructurings in Europe, the winning far-left party Syriza is keen on keeping its pledge on a sovereign debt restructuring. Possible [...]

Norway’s Sovereign Wealth Fund Changed its Course on Greek Debt

UPDATE – January 28, 2015: Standard & Poor’s is considering downgrading Greece’s credit. The ratings agency is concerned whether Greece can continue to service its debt. Correction: Originally the article mentioned NBIM buying large swaths of Greek debt in 2010. NBIM had a position in Greek debt and since December 2008, the value of the [...]

Syriza Wins: Will There be a Grexit?

The Coalition of the Radical Left, also known as Syriza, has won power in Greek national elections, projecting to capture 149 seats of the 300 in parliament. This win gives the far left party a major anti-austerity mandate which will put Greece at odds with the eurozone and creditors. The landslide victory punished the current [...]

3 Recent Events That Will Rock Middle East Economies

The Kingdom of Saudi Arabia and Libya are home to massive pools of cash derived from oil wealth. Both of these countries have sovereign wealth funds and other large public funds. Saudi State TV has reported Saudi King Abdullah bin Abdulaziz has passed away at the age of 91. Prince Salman, King Abdullah’s 79-year-old half-brother, [...]

Russian Central Bank Voids Ratings After March 2014

The Central Bank of Russia will no longer use credit ratings from Standard & Poor’s, Fitch Ratings, or Moody’s Investors Service that were assigned after March 1, 2014. Essentially, the central bank is using ratings from before Russia’s move into Crimea.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view [...]