Economics, Econometrics and Finance
4 years ago

Diversifying central bank reserves reduces risk and boosts returns significantly.

Journal of Asset Management
Towards greater diversification in central bank reserves
Marie Brière, Valérie Mignon, Kim Oosterlinck, Ariane Szafarz

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Investors Benefit from Less Volatile Returns with Inflation-Protected Bonds

Asset Pricing
Macroeconomic Analysis
Credit Expansion
2 views
Economics, Econometrics and Finance
8 years ago

Indexed bonds offer less volatile returns and lower correlation with stocks.

Asset Pricing
Credit Expansion
Macroeconomic Analysis
2 views
Business, Management and Accounting
8 years ago

Retirees Thrive by Investing in Stocks Over Bonds, Study Finds.

Retirement Planning
Retirement Impact
Ageing Research

The article compares different ways to spread out central bank reserves to reduce risk. By looking at data from 1986 to 2015, they found that adding currencies like the Australian and Canadian dollars can lower risk. They also discovered that investing in mortgage-backed securities, corporate bonds, and stocks can increase expected returns.