Currency Overlay

Beschreibung

Currency overlay is the management of the currency exposureinherent in cross-border institutional investments. Exposure toforeign currencies increases the volatility of their returns,without increasing the returns themselves and academics andconsultants recommended that the currency exposure should bestripped out of international portfolios and eliminated as far aspracticable. This book provides a comprehensive description of currencyoverlay, its history and possible future developments and growth,the reason for its emergence, the debates and controversies, thedifferent styles of currency management, and the industry'sperformance track record. This is a subject of international appeal and is an area ofparticular growth potential for institutional investors. Coverage includes: * The theoretical case for eliminating currency risk ininternational portfolios * The interplay between asset returns and currency returns, andthe effect of this on hedging decisions * Benchmarks - their construction and strategic role * Least-cost passive overlay * The structure of the currency market, and its'inefficiencies' * Active overlay styles * Active overlay both restricted and unrestricted (currencyalpha) * Uses diagrams, charts, tables and explanatory boxes to explainconcepts

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Neil Record

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Börsenhandel Finance & Investments Finanz- u. Anlagewesen Trading

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