2 Jun 2014
How aggressive will Japan be on GPIF portfolio adjustments?
FXStreet (Bali) - Nomura forecats a maximum of $200 billion in foreign asset purchases by Japan’s pension funds (GPIF), Bloomberg reports, an event that may wreak havoc the Japanese Yen, the bank says.
As read in Bloomberg: "Nomura predicts that a selloff of local bonds by the $1.3 trillion GPIF will depreciate the nation’s currency by about 10 yen against the dollar over the next 12-18 months, while Mitsubishi UFJ Morgan Stanley Securities Co. estimates an 8 yen slide. GPIF and other public pension funds will shift an additional 12.4 trillion yen ($122 billion) into foreign bonds and 7.5 trillion yen into overseas stocks, according to Nomura’s “upside scenario.”
Bloomberg adds, quoting Daisaku Ueno, the Tokyo-based chief currency strategist at Mitsubishi UFJ Morgan Stanley: “If the GPIF bombshell drops at the right time, dollar-yen could top 110 within this year. With Prime Minister Abe pushing hard for change, and the market expecting something, it’s difficult for GPIF to reply with nothing in June.”
As read in Bloomberg: "Nomura predicts that a selloff of local bonds by the $1.3 trillion GPIF will depreciate the nation’s currency by about 10 yen against the dollar over the next 12-18 months, while Mitsubishi UFJ Morgan Stanley Securities Co. estimates an 8 yen slide. GPIF and other public pension funds will shift an additional 12.4 trillion yen ($122 billion) into foreign bonds and 7.5 trillion yen into overseas stocks, according to Nomura’s “upside scenario.”
Bloomberg adds, quoting Daisaku Ueno, the Tokyo-based chief currency strategist at Mitsubishi UFJ Morgan Stanley: “If the GPIF bombshell drops at the right time, dollar-yen could top 110 within this year. With Prime Minister Abe pushing hard for change, and the market expecting something, it’s difficult for GPIF to reply with nothing in June.”