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The Largest Bond Portfolio In The World

May 01, 2022 2:48 AM ET9 Comments
Michael Gray profile picture
Michael Gray


  • There are many large Fixed Income investment managers, but the largest bond portfolio in the world is the $8.7 trillion System Open Market Account (SOMA), managed by the Federal Reserve Bank.
  • The Fed's SOMA portfolio is made up of $5.9 trillion of US Treasury securities and $2.7 trillion of Mortgage-Backed Securities.
  • As the Fed reduces its balance sheet through runoffs, the main source of demand for fixed income securities is exiting the market and will be difficult to replace.
Portfolio and wealth management with risk diversification concept : Small paper cartons / boxes of financial instruments i.e ETFs, REITs, stocks, bonds, mutual funds and commodities, on a wood table.

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There are a lot of large Fixed Income investment managers.

BlackRock manages the largest Fixed Income ETF with their iShares Core US Aggregate Bond at $85.5 billion.

CalPERS is the largest Fixed Income pension manager with $141 billion under management.

This article was written by

Michael Gray profile picture
I've devoted my career to following the capital markets and managing fixed income assets.  I founded Gray Capital Management LLC and before that was Head of Taxable Fixed Income at Fidelity Investments.  I have an MBA in Finance from Wharton and a BA in Economics from Union College.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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