EVOLVING ROLES OF SOVEREIGN WEALTH MANAGERS AFTER THE FINANCIAL CRISIS: PAST, PRESENT AND FUTURE - Hardcover

LEE, BERNARD

Hardcover

ISBN 10: 9814452475 ISBN 13: 9789814452472

Publisher: World Scientific Publishing Company, 2014

Synopsis

Consider these phenomena:Savers at surplus countries are often “penalized” by astronomical consumer prices, while spenders at debtor countries enjoy bargain basement prices;;Silicon Valley continues to be the global leader in R&D and innovation despite chaos in public finance; and;Surplus countries worry about holding potentially worthless IOUs issued by elected debtor governments.;In this book, Professor Lee has tried to better understand sovereign wealth management in the context of saver and debtor countries, by presenting a unified model that can explain these observed phenomena. His attempt is a clear departure from traditional theories, in which these observations would be considered aberrations from “standard assumptions”. Although no model is perfect, this new framework can be useful to explain why, for example, it will be bad economic news for all if saver countries use their public surpluses to hoard food and fuel.This accessible book is built from a scholarly paper presented by Professor Lee at the venerable Annual Meeting of the American Economic Association.

About this title

From the Back Cover

This book talks about the past realities, evolving roles and future directions of sovereign wealth fund (SWF) managers in these areas:

Investment behavior of SWF managers up to this point due to their massive size: How sovereign wealth funds may behave differently from commercial investment houses managing comparable amounts of assets

The evolving role of these SWF managers as "investors of last resort" during the Financial Crisis, and whether there are better ways to understand their investing behavior given that they can destabilize entire market segments

Future market scenarios given the likely roles SWF managers going forward, when they may be the only type of entities available with sufficient balance sheets to offer a credible solution to the underlying cause of the Financial Crisis, which is global imbalance.

Analyses in this book were developed by working with real-life portfolios of comparable size, making them realistic and useful for investors, allocators as well as policymakers to understand sovereign wealth investments as well as their investment and policy implications.

Edition details

• Publisher: World Scientific Publishing Company
• Publication date: 2014
• Language: English
• ISBN 10: 9814452475
• ISBN 13: 9789814452472
• Binding: Hardcover
• Number of pages: 122