NBIM seeks to cut Norway's $2.3tn government bonds to 50%
Norway's massive $2.3 trillion sovereign wealth fund wants to cut back on government bonds (dropping from 70% to 50%) so it can put more money into riskier, potentially higher-return fixed-income assets.
The idea is to keep the fund flexible and ready for whatever the markets throw at it.
NBIM, which manages the fund, laid out these changes in a letter to Norway's Ministry of Finance earlier this week.
NBIM may sell $58bn government bonds
If approved, the move could mean selling off about $58 billion in government bonds (with US Treasuries taking the biggest hit) and possibly buying more Japanese bonds instead.
NBIM also suggests switching up how it measures bond indexes, focusing on market value rather than GDP since high debt is pretty much standard in developed countries now.
NBIM says this could help Norway's fund stay diversified and grab better returns while global bond yields and debt levels are rising.