Some of you may remember this post from September 9th when I doubted the merits of Norway's decision to invest in junk-rated European sovereign debt.
Today, Norway's government agreed.
Nov. 11 (Bloomberg) -- Norway’s government will require the country’s $520 billion Government Pension Fund Global, the world’s second- biggest sovereign wealth fund, to limit investments in junk-rated debt amid growing concern peripheral Europe’s fiscal crisis may be escalating.
Months ago, Norway's Finance Minister described their junk bond purchases as "investing for infinity."
Today's announcement, however, marks the slow but steady shift from risk taking to risk aversion that will alter the investment landscape for years to come.
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