| dc.description.abstract | Swedish National Debt Office (SNDO) is responsible for managing Sweden’s
central government debt. Since the mid-1970s, SNDO has issued bonds in foreign
currency in addition to Swedish Krona (SEK) debt, thereby incurring exposure to
currency risk. Annually, the Swedish Parliament specifies the proportion of
foreign currency and SEK debt, and allows SNDO to tactically trade a portion of
the foreign currency liquidity to lower the costs of debt. This paper examines the
active currency management at SNDO from 2002 to 2017, conducted by internal
and external managers. It provides a detailed description of the approach,
evaluates its strengths, and concludes that the practice has generated a return of
SEK 1,360 million, or 0.29% of total debt servicing costs. | nb_NO |
