Biggest Danish Fund Readies for Rate Shock as Exit Narrows
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Denmark’s biggest pension fund, ATP, says it’s willing to sustain losses in the short term as part of a bet that central banks will need to reverse an unprecedented period of monetary easing.
The fund, which manages about $115 billion in assets, is preparing for higher rates even as central banks overseeing the world’s biggest economies signal they’re committed to historically lax policy. For ATP, the goal is not to be part of the crowd of investors heading for the door when markets exit securities that rely on low rates to stay profitable.