The World’s Biggest Wealth Fund Has $215 Billion In US Treasurys. It Wants To Cut Back. - International Business Times
The World’s Biggest Wealth Fund Has $215 Billion In US Treasurys. It Wants To Cut Back. - International Business Times
Source: International Business Times
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DW NOTE
Norway's sovereign wealth fund holds $1.5 trillion — roughly twice the annual GDP of Norway itself. When a portfolio that size decides US Treasurys have become a concentration risk, that's not portfolio rebalancing, that's a comment on fiscal sustainability. The fund already reduced its Treasury allocation from 60% of fixed income in 2017 to under 50% today. Now it wants to go further. This matters because Norway is not frontrunning a trade or making a political statement — it is reducing exposure to a borrower running $1.8 trillion deficits while the 10-year yield sits at 4.78% and Congress debates another spending package.