BABRAHAM, United Kingdom - Bank of England Deputy Governor Dave Ramsden takes part in a panel discussion on productivity and
economic rebalancing with the Confederation of British Industry's director - general, Carolyn Fairbairn.
Adopting the discipline of
rebalancing bond exposures toward fundamental weights, which are linked to the
economic size of the underlying issuing companies rather than to the amount of debt they have issued, achieves the dual objective of: 1) tilting holdings toward companies
with better debt servicing and higher credit ratings; and 2) taking advantage of mean reversion in securities prices over time.