In this article, we present a structured approach to assist fund managers when acquiring assets denominated in a currency other than the fund's base currency to evaluate their Foreign Exchange (FX) exposure and assess if and how to manage its currency risk.

G10 currencies all traded in a holding pattern last week, as investors await the December meetings of the key central banks, including the ECB this week and the Federal Reserve and the BoE the next one.

G10 currencies all traded in a holding pattern last week, as investors await the December meetings of the key central banks, including the ECB this week and the Federal Reserve and the BoE the next one.

The blog discusses the approach funds with assets denominated in currencies different from their base currency take to hedge Foreign Exchange (FX) risk related to fund exits. It highlights why EUR private funds with USD assets are moving from rolling short-dated forwards to longer-dated FX hedging.

The so-called Trump trade suffered a meaningful reversal last week, with possible profit taking and month-end rebalancing flows also contributing to a broad dollar retracement.

The so-called Trump trade suffered a meaningful reversal last week. US Treasury yields retreated, possibly on relief that US inflation data came out largely as expected.

The ‘Trump trade’ took a bit of a breather last week as bargain hunters emerged to shop for its victims, including Treasury bonds and selected EM currencies that had been cheapened by the post-election selloff.

The ‘Trump trade’ took a bit of a breather last week as bargain hunters emerged to shop for its victims, including Treasury bonds and selected EM currencies that had been cheapened by the post-election selloff.