Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), experienced a loss of 278 billion kroner ($29.7 billion) in the third quarter of 2026. This downturn is attributed to a global bond market rout, where government bond yields increased sharply as central banks, including the U.S.
Federal Reserve, initiated rate hikes amid rising inflation and government debt concerns. Approximately 70% of NBIM's fixed income portfolio is in government bonds, which suffered a negative return of 3.5%, significantly affecting the overall portfolio performance.
Trond Grande, NBIM's Deputy CEO, noted that the fund's return was nearly flat, ending slightly negative due to the adverse effects of rising interest rates on fixed-income investments. The fund holds 1,664 bonds across 51 countries, with fixed income representing just over a quarter of its total portfolio. In light of these results, NBIM has indicated plans to reduce its U.S.
Treasury holdings as part of a strategy to decrease its exposure to government-issued debt