Denmark’s ATP warns of inflation threat to risk parity

Pension fund cuts risk to guard against correlation switchback


A high-profile proponent of risk parity strategies has warned that a change in stock-bond correlations – a growing possibility as central banks exit quantitative easing – presents the biggest threat to this popular investment approach.

Steep rate hikes by the US Federal Reserve, for example, as it ends a decade of loose monetary policy, could threaten the offsetting effect of fixed-income and equity positions that underpins risk parity investing, said Kasper Ahrndt Lorenzen, chief investment

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: