Fixed income in reserves
Central Banking speaks to four officials
about their fixed income investments and
how monetary policy and inflation interact
with reserve management.
Global reserve levels are recovering from a series of unprecedented economic shocks. In the new interest rate era, bonds became more appealing as yields rose. But they also come with the risk of devaluation as above-target inflation persists. Many central banks reported losses in 2022. Meanwhile, fixed income returns are being eroded by higher costs.
This report contextualises central banks’ investment policies in the events shaping the global financial landscape. It explores reserve managers’ fixed income allocations since 2021, at a time of heightened market volatility and war. Has the fight against inflation been won and have we reached terminal rates? Questions around monetary policy lag are further fuelling uncertainty around how it interacts with reserve management.
Last year, global public debt reached an all-time high of $92 trillion. Looking forward, how should reserve managers be preparing for more expensive debt servicing? Outside of sovereign bonds, how are central banks using corporate, green and inflation-protected instruments?
These questions and more are explored as Central Banking equips reserve managers with the benefits of knowledge-sharing to position themselves to meet the demands of the new era.
Fixed income
in a new era
Case studies
A new era for
reserve managers
For enquires and information regarding Central Banking focus reports, contact:
Sabina Begum
+44 20 7316 9633
sabina.begum@infopro-digital.com
Fixed income
in a new era
Invesco comments on the case study interviews conducted by Central Banking for this report.
The long and short of it
Central Banking case studies in point
Sponsored commentary
Gerardo García, Banxico, discusses fixed income, including US Treasury and MBS dynamics, currency diversification, the value of external managers and his extensive use of derivatives, including USD/JPY basis trades.
Banxico's García on reserve risks
Inflation, market volatility and war
Invesco addresses the concerns of large institutional investors investing in the corporate bond market.
Fixed income factor portfolios for institutional investors
Sponsored feature
Panellists discuss tranching, tactical diversification and strategic asset allocation governance in current market conditions.
Should reserve managers diversify when rates are high?
Panel discussion
After many central banks’ reserves declined in 2022, how should managers evaluate their fixed income investment policies in an uncertain period following years of unprecedented shocks?
A turning point for
reserve managers?
Turning point
Sponsored commentary
Interview
Sponsored feature
Panel discussion
Turning point
Case studies
Interview
Fixed income
in reserves
After many central banks’ reserves declined in 2022, how should managers evaluate their fixed income investment policies in an uncertain period following years of unprecedented shocks?
A turning point for reserve managers?
Turning point
Gerardo García, director general of central banking operations at Bank of Mexico, discusses fixed income, including US Treasury and mortgage-backed securities dynamics, currency diversification, the value of external managers and his extensive use of derivatives, including USD/JPY basis trades.
Interview
Banxico's García on reserve risks
Inflation, market volatility and war
Headline
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