When it’s better to be a debtor, Emerging from crisis – preventing the next
Thursday 20 August 2020 – Vol.11 Ed.34.4
Commentary: When it’s better to be a debtor
By Chris Papadopoullos in London
A new era of inflation – or deflation – would create financial winners and losers among the world’s major lender and borrower economies. An inflationary macroeconomic environment tends to benefit holders of equities and punish holders of bonds. For most advanced debtor economies, equities take up a higher share of foreign assets than foreign liabilities. This means that an inflationary world economy would help to reduce the NIIPs of debtor economies. A deflationary one would have the opposite effect.
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Global Public Investor 2020: Sustainable investment
More than 90% of global public investors have specific environment, social and governance investment policies in place or are in the process of developing them, according to a survey from BNY Mellon and OMFIF. In supporting the post-pandemic recovery, GPIs will have a chance to build on the momentum of the sustainability agenda of recent years. They are also motivated to adopt ESG criteria by the potential for superior risk-adjusted returns. However, they still face significant barriers in scaling up these efforts.
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