CANADA - The Canadian Pension Plan (CPP) Investment Board has defended its decision to invest in asset backed commercial paper (ABCP) and cited market confusion as an opportunity to make money.
A statement from CPP said: "Current market conditions present good opportunities to purchase high-quality, bank-sponsored fixed income securities at an attractive yield to earn risk-adjusted returns.
"The opportunity stems from confusion in the marketplace between high-quality bank-sponsored ABCP and significantly lower-quality non bank-sponsored ABCP."
The C$121bn (US$121bn) fund announced that as of mid-December it held C$6bn (US$6bn) in the vehicle.
Non-bank sponsored ABCP hit the news recently as assets were frozen and became the subject of the Montreal Accord negations calling for better regulation of the class.
CPP actively emphasised the difference between the two classes of investment, covering the different areas of debt in which they invested and levels of leverage.
At the end of November, compatriot investor La Caisse de Depot et Placement du Quebec announced it had made a potential C$500m (US$500m) write down due to its holdings in sub-prime ABCP.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.