Bloomberg reporting today that Denmark’s largest pension fund is not at all worried about the EURDKK peg breaking. Sigh, where to begin?
From the article:
“We have full confidence in the central bank’s ability to maintain the peg,” Carsten Stendevad, chief executive officer at ATP, said in an interview in Copenhagen. “The central bank has ample ammunition and we’re very comfortable with the situation.”
The fund, which oversees about $110 billion in assets, says it makes no financial sense to bet against Denmark’s currency regime, which has existed for three decades, has the full support of parliament and is backed by the European Central Bank.
“The current situation in the market has not changed our firm conviction in the peg. The percentage of our assets in Danish kroner is lower today than at the end of the year and it was lower at the end of the year than it was a year ago,” Stendevad said. “I think that shows our full confidence and conviction that the peg is as safe as ever.”