Biggest Wealth Fund Joins Bears in Bet Europe Bonds Fade
Yngve Slyngstad, Chief Executive Officer of Norges Bank Investment Management, said last month that the fund had sought to profit from quantitative easing by, among other things, buying Spanish bonds. Photographer: Krister Soerboe/Bloomberg
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Norway’s $900 billion sovereign wealth fund is joining Janus Capital’s Bill Gross and Jeffrey Gundlach of Doubleline Capital in betting Europe’s historic bond rally is coming to an end.
Yngve Slyngstad, the manager of the Oslo-based fund which on Wednesday reported a record investment return, said he is weighting a 2.5 trillion-krone ($328 billion) bond portfolio to shorter maturities, meaning it will outperform when rates rise.