Polish open pension funds (OFEs) are currently buying Polish corporate bonds as they rush to diversify their portfolios as part of a risk reduction strategy. The business website parkiet.pl reports that the activity has pushed demand for corporate bonds to new highs on the Warsaw Stock Exchange. Market watchers point out that since winning the right to invest in foreign shares earlier this year, OFEs have been on a buying binge in an attempt to improve both liquidity and ERR numbers. They now appear to be sobering up and retreating from some of their foreign positions, but observers warn that the OFEs will continue to find it difficult to reduce their overall investment risk levels effectively.
