Yesterday Posted July 30, 2010 Report Posted July 30, 2010 SWFs are typically created when governments have budgetary surpluses and have little or no international debt Taking a lack of transparency into account, on the wiki page Canada's SWF performance seems to be weak. What kind of revenue do we gain from this type of investment? These are assets of the sovereign nations which are typically held in domestic and different reserve currencies such as the dollar, euro and yen I wonder if Harper's interest in increasing foreign investment in our dollar is one way Harper is creating SWFs for Canada? Some central banks have even begun buying equities, or derivatives of differing ilk (even if fairly safe ones, like Overnight Interest rate swaps).[ Interesting...in terms of Zirp where the interest on overnight swaps is basically nill, how many SWFs have been affected? Are our SWFs, whatever they are beyond the one listed on Wiki, held by the banks? How about the US's SWFs? Quote
Bonam Posted July 30, 2010 Report Posted July 30, 2010 Taking a lack of transparency into account, on the wiki page Canada's SWF performance seems to be weak. What kind of revenue do we gain from this type of investment? I wonder if Harper's interest in increasing foreign investment in our dollar is one way Harper is creating SWFs for Canada? Interesting...in terms of Zirp where the interest on overnight swaps is basically nill, how many SWFs have been affected? Are our SWFs, whatever they are beyond the one listed on Wiki, held by the banks? How about the US's SWFs? Not all states hold SWFs. As far as I've heard, neither Canada nor the US do at the federal level, though some Canadian provinces and some US states do. Banks holding investments is a private investment, not an SWF. Quote
Yesterday Posted July 30, 2010 Report Posted July 30, 2010 Not all states hold SWFs. As far as I've heard, neither Canada nor the US do at the federal level, though some Canadian provinces and some US states do. Banks holding investments is a private investment, not an SWF. Hi, Some sovereign wealth funds are held solely by a central bank, which accumulates the funds in the course of its management of a nation's banking system; this type of fund is usually of major economic and fiscal importance There have been attempts to distinguish funds held by sovereign entities from foreign exchange reserves held by central banks. Sovereign wealth funds can be characterized as maximizing long term return, with foreign exchange reserves serving short term currency stabilization and liquidity management. I wonder what our ratio of short term to long term bonds is? Would you say that we could at least speculate on the definition of any long term bonds issued by the government then administered by the bank as a possible SWF? In countries where the interest rate on products used by banks who do manage the SWFs is being subjected to Zirp, could that be a way to limit bank control on the investment return of the government? Quote
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