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Goldman Sachs: Bank of Japan may choose to gradually sell ETFs in the market
Summary: Goldman Sachs reported that when the Bank of Japan decides to reduce its holdings of ETFs in the future, it will choose to gradually sell these ETFs in the market, rather than transferring them to the government as some have suggested. Since 2010, as part of its ultra-loose monetary policy to revive the sluggish economy, ...
Goldman Sachs reported that when the Bank of Japan decides to reduce its holdings of ETFs in the future, it will choose to gradually sell these ETFs in the market, rather than transferring them to the government as some have suggested. Since 2010, as part of its ultra-loose monetary policy to revive the sluggish economy, the Bank of Japan has been purchasing ETFs, a measure that has lasted for 13 years. Although the Bank of Japan stopped buying ETFs last year, it has not yet announced when and how it will dispose of its holdings of around 37 trillion yen (approximately $252 billion) worth of ETF assets, with a market value of around 70 trillion yen. The Bank of Japan has stated that when deciding to reduce these assets, it will be based on three principles: selling at an appropriate price, avoiding losses for the central bank, and selling in a way that minimizes market disruption. Goldman Sachs pointed out that a method that meets all three conditions may be to gradually sell in small quantities on the open market.
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