Investors are shifting their positions in fixed income, and looking for more ESG opportunities in their private equity investments, according to a Manulife Investment Management report.
Insto roundup: GPIF makes record cut to treasuries weighting; AustralianSuper to triple private debt investments
Omers to buy Indian renewable power producer; GPIF made record cut to treasuries weighting; AustralianSuper's private debt investments to hit A$15 billion by 2024; Hong Kong Exchange Fund's investment income recovers for H1 2021; China's securities regulator claims to seek closer cooperation with US; Allianz wins approval from Chinese regulators to launch asset management firm; and more
Beijing is seen as highly unlikely to rush to offload US Treasuries for a number of reasons, despite mounting tensions between the US and China.
Instability sparked by anti-racism protests are not set to deter investor allocations to US Treasuries, but the country's high-debt level could begin to erode its creditworthiness.
In the latest Year of the Dog prediction question, AsianInvestor questions whether the US Treasury curve will invert, and herald a potential economic recession.
Relative value managers raced to short their Treasury positions after the US Fed hinted at tapering in May, borrowing from the repo market. But demand saw hedging costs spiral.