Fixed income and foreign exchange
The unit is responsible for both management of the Fund's bond portfolio and currency hedging of the Fund's foreign assets. The bond portfolio consist of both nominal and index-linked bonds issued by governments, intermediary insitutions and companies with high credit ratings.
Fixed income management is focused on identification of factors that can influence both the general short- and long-term interest rate trend and the spread between different types of fixed income securities.
Valuation of interest rates and positions is based on projections and assessment of
- economic and political trends
- market positioning
- the future supply from different issuers and their creditworthiness
Based on the unit’s research, decisions are made regarding the desired level of risk and exposure to different parts of the fixed income market.