Latest news with #assetdiversification
Bloomberg
20-05-2025
- Business
- Bloomberg
KKR Says Bonds' Role as Portfolio ‘Shock Absorbers' Is Eroding
Government bonds are no longer working as an effective hedge against risky assets, creating a challenge for global investors and spurring a search for asset diversification, according to KKR & Co. Bigger fiscal deficits and stickier inflation suggest that bonds will not always rally when stocks sell off, breaking down the traditional relationship between the two assets, Henry McVey, KKR's head of global macro and asset allocation, said in a research note.
Free Malaysia Today
07-05-2025
- Business
- Free Malaysia Today
Malaysia's biggest state fund revives exchangeable bond sale plan
Permodalan Nasional Bhd had RM347 billion in assets under management as of Dec 24. KUALA LUMPUR : Permodalan Nasional Bhd (PNB) is considering reviving an exchangeable bond sale that it had explored six years ago to raise funds to expand overseas, people with knowledge of the matter said. State-owned PNB is working with financial advisers on the potential offering of exchangeable bonds, which are notes backed by shares in a listed company, according to the people, who asked not to be identified because the process is private. 'It would be PNB's first exchangeable bond sale,' they said. 'PNB is still deliberating and hasn't decided on the underlying stock or size and timing of a sale,' the people said. In response to a Bloomberg News query on the matter, PNB said it continuously evaluates options as part of an asset diversification strategy aimed at delivering sustainable returns. PNB had RM347 billion (US$82 billion) assets under management as of Dec 24. Its investments include stakes in Malayan Banking Bhd, conglomerate Sime Darby Bhd and developer SP Setia Bhd. PNB also has holdings in Axiata Group Bhd, CIMB Group Holdings Bhd and Telekom Malaysia Bhd, among others. PNB explored an exchangeable bond sale in 2019, Bloomberg reported, but a change in leadership and the Covid pandemic put the brakes on that plan.
