Central Banking
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 […]


sovereign wealth fund dealmakers

Bank of Thailand Steps Toward Foreign Equity Allocation

As negative interest rates influence the value of developed government debt instruments, Asian central banks are rethinking asset allocation. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SWFI First Read, March 17, 2016

Norway Lowers Key Policy Rate Down to 0.5% Norges Bank’s executive board decided to lower the key policy rate to 0.5% from 0.75%. According to a statement from the central bank’s governor Governor Øystein, ” Growth prospects for the Norwegian economy have weakened somewhat and inflation is expected to moderate further out. The Board has […]


Cyber Bank Robbery at Bangladesh Central Bank

Dhaka-based Bangladesh Bank, the central bank of Bangladesh, has around US$ 25 billion in foreign reserves since June 2015. The central bank was raided by hackers in February, stealing money from the central bank’s account held at the Federal Reserve Bank of New York. It was reported by numerous media that around US$ 101 million […]


ECB debt

SURPRISE: ECB Boosts Asset Purchase Program

The European Central Bank (ECB) is expanding its monthly asset purchase program to €80 billion from €60 billion starting April 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SAFE: CIC’s Assets Not Includes in Foreign Reserves

China’s State Administration of Foreign Exchange (SAFE) put out a statement on its microblog stating the assets of the country’s sovereign wealth fund , also known as the China Investment Corporation (CIC), are not included in China’s foreign exchange reserves. And that the assets of China’s sovereign wealth fund do not impact China’s reserves.


SAMA Reserves and Net Foreign Assets Fall Slightly in Jan 2016

Oil prices have remained low as the glut continues. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Negative Interest Rates Irritate Public Investor Capital

Sovereign wealth funds and other large public institutional investors, such as pensions and superannuation funds, are worried about central bank policy flowing into untested waters – negative interest rates. Large-scale asset purchases combined with low or negative interest rates continue to push institutional investors toward risk assets. The concern is legitimate. U.S. public pensions such […]


Should Sovereign Funds Be Concerned About Fannie Mae?

Sovereign wealth funds, pensions and even central banks have been investors in Fannie Mae-backed securities. In fact, in the late 1970s, one of the largest holders of Fannie Mae securities was the Saudi Arabian Monetary Agency (SAMA). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


UAE Central Bank Records Drop in Foreign Assets

As crude oil prices continues to linger at lower-than-expected ranges, the Gulf commodity countries are witnessing their public finances worsen. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Sovereign Fund Instills Confidence in Credit Suisse

Traders have grown nervous about the current health of major European banking institutions, as credit default swaps tied to certain debt surged among several banks in the past few weeks. Deutsche Bank recently announced a bond buyback to calm markets, showing its ability to pay off debt. The plan is to buyback US$ 5.4 billion […]