Risk Management For Central Banks And Other Public Investors PDF Download

"The main aim of the current as well as previous Public Investor Conferences has been to create a forum where academics and private and public sector investment professionals can meet to discuss and ponder the issues of specific relevance to public sector investors. Investment rationales, preferences, eligible investments, governance structures and accountabilities as well as aspects relating to the availability of human and technical resources distinguish public investors. These idiosyncrasies have profound effects on how portfolio and risk management activities are organized and performed in public sector institutions. Faced with high growth rates in foreign reserves and other pools of publicly managed funds, public investors are beginning again to discuss broader diversification of assets. Judging from the contributions to and discussions at the conference, central banks are concentrating their search for diversification opportunities on investment alternatives among sovereign obligations, including inflation-linked instruments and investments denominated in currencies other than those represented in the SDR basket. At the same time, public investors are becoming more aware of possible tension between what is optimal at the level of an individual investor and what might be required from the perspective of stability of financial markets. In terms of methodologies and techniques, similar to other institutional investors, public investors have accelerated efforts to develop and implement approaches for the management of market and credit risk that take on board lessons from the financial crisis."- -Introduction.