The draw for SWFs, increasingly facing calls from governments to help fund budget deficits, is simply the yield that private debt offers.
Banks have faced a welter of new regulation since the financial crisis, burdening them with new costs and making them more cautious. Lenders have also been fined hefty sums for breaching anti money-laundering rules.
Asset managers, including a cohort of UK managers, are also looking into employing the technology to trade directly with each other, cutting out traditional middlemen such as brokers and bringing their costs down in the process.
Latest UK data were mixed. The labour report was consistent with a slowing economy, the March production data were poor and the March trade deficit increased. But April’s retail sales were buoyant and the housing market looks firm.