The de facto central bank plans to increase the liquidity level in its portfolio. Experts say this could mean cutting its alternative asset exposure while raising its allocation to bonds.
Regional governments are weighing all funding options to offset falling economies. But few look likely to draw down on sovereign fund assets – for now.
Implementing best practices for liquidity management is proving challenging for some asset managers, as concerns mount about the potential for a squeeze in fixed income markets.
The sovereign wealth fund was among those taking part in the Asian Investment Summit, as panelists discussed screening for liquidity against different investment horizons.
Lauren Oakes of Goldman Sachs Asset Management spoke to AsianInvestor about the top-line findings from this year's Asia-Pacific liquidity survey.
The main focus in early 2017 will be on the US, but may soon shift to concerns about Europe. Meanwhile, portfolio strategies are still being driven by ultra-low yields and high uncertainty.