Reserve managers expanding into riskier assets, survey finds

Central banks are investing in a wider range of ‘non-traditional' currencies and riskier assets, including equities, as yields on US and European sovereign bonds remain depressed, according to a survey conducted by Central Banking Publications and the Royal Bank of Scotland.

All but one respondent agreed the Federal Reserve and the European Central Bank's low interest rates were impacting reserve management, while several respondents noted the low rates have reduced the income central banks