At 31 December 2016, hedging assets accounted for 48.9% of the FRR’s net assets, and mainly included financial instruments7 used for matching liabilities, but also good quality corporate bonds.
The passive decrease of 2% in matching (linked to the use of coupons and OATs maturing in 2016 to pay the CADES) was offset by an increase in quality corporate bonds (1% in euro, 1% in dollar). The weighting of these bonds in hedging assets reached 49% at the end of 2016 and accounted for most of the return on bond investments.
This asset class was the subject of 11 new mandates in euro and dollars, renewing previous mandates. Bonds issued in dollars are systematically hedged against currency risk.