| Sovereign wealth funds, pressured by stubbornly low oil prices, have been roundly blamed as one culprit in the recent rout across global markets. These funds, government-owned investment pools, have reportedly been forced to sell some of their stocks and bonds. One analyst noted recently estimated that financial shares look most vulnerable to sovereign wealth fund selling, with global stocks possibly coming under $80 billion of selling in 2016, assuming that oil prices stick around $30 a barrel.
Against this fraught backdrop, news that Norges Bank, Norway’s SWF and the largest in the world, is buying banks stocks has been warmly received. Bloomberg’s Jeffrey Voegeli noted that Norges Bank boosted its stake in Credit Suisse (CSGN) as they plunged in recent weeks...............................................Full Article: Source
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