Connect with us

MORE STIMULATION: ECB Contemplates Purchasing Corporate Bonds

Published

on

ecbThe European Central Bank (ECB) is contemplating on whether to purchase corporate bonds on the secondary market. On Tuesday, Reuters broke the story on the ECB’s consideration of corporate bond purchases. The central bank will most likely decide on the measure in December and if approved, bond purchases may begin in the first quarter of 2015. This move would augment the central bank’s private sector asset-purchasing initiative in a bid to pump up economic activity in the eurozone. Taking a page on quantitative easing (QE) measures from the U.S. and Japan, the ECB is attempting to raise the supply of money in the European economy. Last week, ECB executive board member Yves Mersch, former Governor of the Central Bank of Luxembourg, commented that large asset purchases by the ECB would expand the gap between rich and poor.

Boosting Europe

On October 20, the ECB began purchasing covered bonds and is targeted to be buying asset-backed securities later this year. Covered bonds are backed by a pool of loans such as mortgages. There is no targeted amount for the covered bond purchases. The central bank has been purchasing short-dated covered bonds from a swath of countries.

GIC Supports CapitaLand Shanghai Investment on Haimen Road

Published

on

GIC Private Limited, Singapore’s sovereign wealth fund, has entered into a 50:50 joint venture with Raffles City China Investment Partners III (RCCIP III), a fund controlled by CapitaLand. The joint venture is acquiring Shanghai’s tallest twin towers for an aggregate consideration of RMB 12.8 billion (US$ 1.84 billion). The property is located in Shanghai’s core Central Business District.

Development Details

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Wells Fargo Could be Slimming Down, Possible Retirement Unit Sale

Published

on

Wells Fargo (WFC) is looking to exit the retirement plan servicing market, for a potential sale price of US$ 1 billion. The unit is involved in record-keeping, custody, trust details and various other retirement plan services for corporations. It is housed under the Wealth and Investment Management unit. The retirement plan servicing market is not particularly compelling for the bank, especially in light of the U.S. Department of Labor’s newer regulations to force managers to disclose compensation arrangements and fees to plan fiduciaries. Wells Fargo has been lauded for its loyal consumer base and high revenue, and doesn’t require the business, though recent scandals have been a drag on the company’s profitability and public image. This news has pre-empted some advisors to jump ship. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Mubadala Petroleum Signs Deal to Buy Interest in Nour North Sinai Offshore Area Concession

Published

on

Mubadala Petroleum, a division of Mubadala Investment Company, signed a deal to acquire a 20% percent participating interest in Egypt’s Nour North Sinai Offshore Area concession. The seller of the interest is a subsidiary of the Italian energy giant Eni. Eni holds an 85% stake in the partnership with Tharwa Petroleum Company, which holds a 15 percent interest. Formed in 2004, Tharwa Petroleum Company is 100% owned by the Egyptian government through a variety of state-owned entities such as the Egyptian General Petroleum Corporation (EGPC) at 20% and Egyptian National Gas Holding Company (EGAS) at 20%.

The sales transaction is subject to conditions, such as approval from government authorities in Egypt.

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.