Tools of Currency Management
Futures or forward contracts on currencies can be used to obtain full currency hedges, although most institutional investors prefer to …
Futures or forward contracts on currencies can be used to obtain full currency hedges, although most institutional investors prefer to …
Active Currency Management Based on Economic Fundamentals This approach assumes that, in the long term, currency value will converge to …
There are a variety of approaches to currency management, ranging from trying to avoid all currency risk in a portfolio …
Domestic currency or home currency is the currency of the investor (or the currency in which portfolio results are reported and analyzed). Domestic …
The Price and Base Currencies: The base currency is the denominator of the exchange rate and it is priced in terms of the numerator. Bid/Asked …
With the introduction of volatility futures and variance swaps, many investors now consider volatility an asset class in itself. In …
Investors can achieve or modify their equity risk exposures using equity swaps and equity forwards and futures. Equity Swaps An …
Currency swaps, forwards, and futures can be used to effectively alter currency risk exposures. Currency risk is the risk that …
An interest rate swap is an over-the-counter (OTC) contract between two parties that agree to exchange cash flows on specified …
There are many ways in which investment managers and investors can use swaps, forwards, futures, and volatility derivatives. The typical …