Sovereign Wealth Funds Are Driving Asset Slump, Jefferies Says

  • Jefferies strategist David Zervos sees `excess savings glut'
  • U.S. consumers will benefit over the longer term, he writes
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Sovereign wealth funds from energy-producing countries are exacerbating a global market rout by selling off assets to meet their financial commitments amid slumping oil prices, according to Jefferies LLC.

The sales mark a new phase for the countries, after they tried boosting oil production and printing currency to make their payments, David Zervos, chief market strategist at New York-based Jefferies, wrote Monday in a note to clients.