SWF absence: Shrinking pot of caution

When Wall Street needed emergency capital this time last year, sovereign wealth funds were the first port of call. In the current turmoil, they have been conspicuously absent – so far. The big question is whether this will now change – in particular, whether China Investment Corporation (CIC) or another fund might ride to Morgan Stanley’s rescue. CIC itself, which owns 10% of the investment bank, is being coy. It told Dow Jones: “You should ask Morgan Stanley first to see if they have such a con...