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AP1 weighs rate options as inflation spike looms

The Swedish pension fund AP1 may veer from its usual investment strategies and buy options as diverging outlooks for inflation look set to create a new opportunity for returns, its chief executive officer said.

AP1's CEO Kristin Magnusson Bernard | Photo: AP1/PR

AP1 doesn’t typically invest in interest rate and foreign currency options "very intensively," but circumstances are different now, the Swedish pension fund's CEO Kristin Magnusson Bernard said in a phone interview.

"We think situations might arise where options strategies would be profitable due to current dispersions of investor views," Bernard said.

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