Pension funds have invested nearly $1 trillion in alternative assets with the world’s largest managers, with total investments in the asset growing by 12 per cent last year, research has revealed.
CDS Auctions
This Paul Woolley Centre Working paper, analyses credit default swap settlement auctions, showing the current auction design many not result in the fair bond price, and suggests modifications to the auction design to minimise mispricing. In particular it finds that an auction undervalues bonds by 10 per cent on average, on the day of the auction.
Temasek’s gaze fixed on China
China is the largest investment destination for Temasek Holdings, with Bank of China and China Construction Bank two of its most significant holdings. Finding investment opportunities in Asia is also the key focus for the Singaporean investment company.
Short-term focus needed to get long duration exposure
Despite recent volatility in equity markets, pension plans looking to transition to a liability-matched investment portfolio need to be proactive to mitigate the risk associated with the move, a US-based consultant has advised.
Reaping the Rewards of UCITS Pooling
The introduction of master-feeder pooling as part of the UCITS IV directive is set to spark wider interest in the concept of pooling, and this Vision paper examines the various options available to asset managers as they seek to build efficient and scalable fund structures. Click here to download the report
The Specter of Rising Interest Rates
After the 2008 financial crisis, global central banks flooded the financial markets with liquidity to restore stability and set the stage for economic recovery. But these actions also raised investor concerns about inflation and fixed income investments. In the accompanying paper, “The Specter of Rising Interest Rates,” Northern Trust’s Jim McDonald discusses the current situation … Read more
