Lithuania adopts maximum diversification as defensive strategy
Risk parity protects portfolio from lower bond prices and lower-for-longer yield environment
The Bank of Lithuania is adopting a maximum diversification strategic asset allocation, designed to protect the reserves portfolio from a higher-yield scenario and a protracted low-return environment.
In 2018, the Baltic central bank incorporated US corporate debt and inflation-protected securities into its €3.8 billion ($4.3 billion) reserves portfolio.
In an interview on March 14, during Central Banking’s National Asset-Liability Management Europe conference in London, board member Tomas
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