ABSTRACT
This chapter owes much to who not only predicted the events but charted their development back to the 1980s. It suggests there is some commonality between Rowe and Soros and that there have been, indeed, some shortcomings in the management of risk. Markets in risk had developed because some parties needed to get rid of risk, and others were willing to take risk in order to make a profit. Sovereign wealth funds can be characterised as maximising long-term return', with foreign exchange reserves serving short-term currency stabilisation', and liquidity management. These results provide practical vindication of the asset-liability management analysis of sovereign investment, as the majority of sovereign investment managers surveyed lament the lack of genuinely dedicated solutions for asset-liability and risk management, opportunities exist for investment banks, asset managers and consultants to better serve these increasingly important investors.
