Deutsche Bank believes that Norway's $2.2 trillion sovereign wealth fund's proposal to adjust its investment strategy may lead to a significant increase in its allocation of Japanese treasury bonds. “Although the amount involved is small compared to the global fixed income market, we believe that as one of the world's largest and most successful sovereign wealth funds, changes in investment strategy strongly indicate that current global capital flows and portfolio allocations are slowly but continuing,” Shreyas Gopal and George Saravelos wrote in the report. Norway acknowledges that sovereign debt is no longer a risk-free asset; it is shifting its allocation of US fixed-income assets from US bonds to non-sovereign fixed-income assets. The Norwegian sovereign wealth fund is also making a major shift to Japanese treasury bonds, thereby “acknowledging the size of its market and reducing the importance of debt as a share of GDP as a market allocation indicator.” This bias in allocation means that the country and currency that benefits the most is the yen.

Deutsche Bank believes that Norway's $2.2 trillion sovereign wealth fund's proposal to adjust its investment strategy may lead to a significant increase in its allocation of Japanese treasury bonds. “Although the amount involved is small compared to the global fixed income market, we believe that as one of the world's largest and most successful sovereign wealth funds, changes in investment strategy strongly indicate that current global capital flows and portfolio allocations are slowly but continuing,” Shreyas Gopal and George Saravelos wrote in the report. Norway acknowledges that sovereign debt is no longer a risk-free asset; it is shifting its allocation of US fixed-income assets from US bonds to non-sovereign fixed-income assets. The Norwegian sovereign wealth fund is also making a major shift to Japanese treasury bonds, thereby “acknowledging the size of its market and reducing the importance of debt as a share of GDP as a market allocation indicator.” This bias in allocation means that the country and currency that benefits the most is the yen.