Understanding foreign exchange risk is a necessary skill for anyone involved in international finance or trade. It involves recognizing how currency values can change due to economic indicators, ...
A quanto swap is a cross-currency derivative that allows interest rate exchanges in different currencies, settled in the same ...
Today’s economic reality includes a world of free-floating fiat currencies, where the value of a nation’s currency is determined by supply and demand in the global foreign exchange or forex market.
Explore currency overlay strategies that separate currency risk from asset management, helping investors mitigate risks and improve international investment decisions.
Currency investing is a well-established corner of institutional investing that has the potential to provide stable returns while simultaneously diversifying traditional equities and fixed income.
Currency arbitrage refers to the practice of taking advantage of exchange rate differences in various foreign exchange market venues to make a net profit. Currency arbitrage plays a significant role ...
Many countries go to great lengths to manage their exchange rates. Probably the most prominent recent example is the European Monetary Union, where all the members abandoned their national currencies ...
Investment risk refers to the potential for an investment to experience a loss or deviation from its expected return and can come from a variety of places. All investments carry some level of risk ...
Interest rate swaps are used by institutions and businesses to manage cash flows and interest rate exposure. Swaps involve the exchange of cash flows between two parties, with an intermediary handling ...