- Advertisement -

Related

New Hedge Fund Influx to Iceland, Following Capital Controls Lift

- Advertisement -
Stockholm (HedgeNordic) A throng of hedge funds has moved back into  Iceland, acquiring a $450 million (48.8 billion Icelandic kronur) stake  in Arion Bank, following the lifting of capital controls in that country  a week ago.
Arion’s largest shareholder sold roughly 10% stakes to Attestor Capital  and Taconic Capital Advisors UK. Other entities affiliated with Goldman  Sachs and Och-Ziff Capital Management Group also bought lesser stakes.  Arion was created from Kaupthing Bank’s domestic assets after the 2008
financial crisis.
“This is a milestone in the settlement of the failed banks,” Iceland’s  Prime Minister Bjarni Bendediktsson told Bloomberg on Monday. “It shows  that Iceland’s economy enjoys trust when we have foreign investors  putting money into the financial sector,” though he added he had “no  premise to evaluate” what plans the funds have for their stakes in the  banks.
Iceland dismantled most of the remaining capital controls that had been  implemented following Kaupthing’s collapse in 2008 under a crushing $85  billion debt. The purchase means the Icelandic Treasury will be repaid  some of the 84 billion-krona bond, Prime Minister Benediktsson said,  making it the “largest equity portfolio investment by foreign parties in  Icelandic history,” according to Paul Copely, CEO at Kaupthing.
The capital controls had lasted nearly a decade despite being an  emergency measure, with financial authorities restructuring debts and  attempting to diversify the economy since its previous drastic turn to international finance, with its known consequences. Because of the need  to freeze assets following the crash, the government has long been  locked in a dispute with international investors, something it hopes to  resolve now.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Simplicity Completes Norron Deal

Three months after announcing the deal, Swedish asset manager Simplicity has completed its acquisition of Norron’s fund management business, taking over the management of...

Rethinking the 60/40 Portfolio

The 60/40 portfolio remains one of investing’s most recognizable conventions, even where few institutional portfolios literally consist of 60 percent equities and 40 percent...

Diversification That Comes From Somewhere Else

Insurance-linked investments offer something increasingly difficult to find in institutional portfolios: return drivers that are fundamentally different from those behind equities and bonds. At...

Reinforce, Don’t Replace: Carrying the 60/40 Through the Fragile Decade

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Despite its ambiguous origins, the 60/40 remains the default portfolio for investors approaching...

Varma: Practical Considerations for Embracing a Total Portfolio View

Finland’s Varma is one of several large Nordic asset owners that has been moving towards a more holistic view of the portfolio – some...

Thinking Outside the 60/40 Box: How Active and Dynamic Commodities Can Complement Bonds

Bonds helped investors to diversify equity between about 2000 and 2021, which more than covers the entire career of many allocators. Since 2022 bonds...

Allocator Interviews

- Advertisement -

Voices

Request for Proposal

- Advertisement -