Reserve managers warned on risks of extending maturities
Reserve managers at central banks should be wary of extending the maturity of their investments in sovereign bonds, such as US Treasuries, as the extra returns may not be worth the additional risks, according to comments made by a speaker at National Asset-Liability Management 2012.
Central banks currently face tough decisions regarding whether or not to adjust their reserves portfolios as investments into short-term, liquid government securities offer little or no return.
This has resulted in
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