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Fri12152017

Last updateSat, 29 Jul 2017 12am

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Norway Oil Fund Moving Away From Bonds

Norwegian oil fund , Norway’s sovereign wealth fund, officially named Government Pension Fund Global or GPFG, is managed by Norges Bank Investment Management, which is under the control of the country’s central bank.  The GPFG is the world’s largest sovereign wealth fund with AUM of $726 Billion.  The fund has reduced its bond holdings to 36.7% at the end of first quarter, its lowest ever level since it first received money in 1996.  Reason is it is not comfortable with the effects of western central banks’ money printing.  Its equity holdings were close to a record high of 62.4%. Add a comment

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Gold suffers biggest one-day drop since 1980s

Gold for June delivery tumbled $140.30 or 9.3% to $1,361.10 an ounce on the Comex division of the New York Mercantile Exchange.  Prices dropped to as low as $1,355.30.  Prices saw their biggest one-day percentage drop since February 1983.  Gold’s one-day dollar drop was the biggest since January 1980 and the second largest in its history. Add a comment

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Sophisticated Credit Investors Bets Against US Junk Bonds

As retail investors pouring money into Junk Bonds, some world’s most sophisticated credit investors:  GSO, the credit arm of Blackstone; Apollo Global Management; Centerbridge Partners; Oaktree Capital; and  a host of credit and so-called “macro” hedge funds are ramping up their bets against it. Add a comment

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Central banks are Moving into Risker Assets

The world’s central bankers together manage reserves worth $10.9tn of which most of it is held by monetary authorities in Asia and the Middle East.  The bulk of their reserves, usually accumulated from attempts to curb their currencies’ gains, are held in the form of US government debt as well as the bonds of safer eurozone sovereigns.  With near-zero interest rates and large-scale money printing, returns on such assets have reached record lows.  To make it worst, the value of dollar and other traditional reserve currencies has fallen…forcing central banks to diversify its portfolio or risk losses on its investment.

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Commodity Hedge Funds loss more than 20% of Assets

For two years in a row now commodity hedge funds have not only lost money, but underperformed even the most basic index investments in raw materials.  Managers and other industry executives estimate that overall assets under management in the sector have fallen by at least 20 per cent in the past year, and perhaps by more than a third!

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