Carry trade
FX books bulge in quant investment field
Carry strategies attract bulk of interest; banks eye growth in volatility, intraday and emerging market replication
Hedge funds ease off profitable China FX options trade
Some still hold positions but an appreciating renminbi may make them less profitable for now
Return of volatility revs up FX options market
Macro disruption hikes volatility for eager dealers, however liquidity and spread compression remain a concern
Power-reverse to the future: falling yen revs up PRDCs again
Pressure on Japanese unit sparks revival in power-reverse dual currency notes
Revival of FX carry strategy leaves quants unconvinced
Record returns in March give little comfort that strategy is ‘back’
Asset managers hold the key to any FX revival
For a regime shift to truly occur, long-term investors need to get on board
USD/HKD carry trade shrugs off interventions
Rate differential drives Hong Kong currency higher despite HKMA’s efforts
Andreas König’s crisis playbook meets Covid-19
Interview: Trading from home may be odd, but Amundi’s FX head was ready for other stresses
Market turmoil causes traders to pull back to vanilla strategies
Emerging markets spreads tighten but liquidity still patchy
HKMA interventions may help open new USD/HKD carry trades
Repeated defences of peg should keep HK dollar weak; it could be used to buy assets in currencies other than US dollar
Record launches FX guide for pensions industry
It gives pension managers insights into the risks and opportunities currencies present
Danske maintains bullish stance on ruble
The bank has positive outlook for Brazilian real and Mexican peso as dollar bear market remains
Markets underpricing impact of tax reform, says BAML
“I think the market is not appreciating the risk of growth,” says David Woo, head of global rates and FX
Managers selective on EM in event of Fed policy mistake
Instead of investing in the whole complex, managers prefer emerging economies with a strong balance sheet
Quants: carry and value will work for next six months
Less volatile market conditions look favourable for these strategies
The euro: safe haven at last?
The euro has strengthened to its highest level since January, undermining the ECB's weak euro strategy and sparking a debate among FX strategists on whether the common currency should be considered a safe haven
To fund or not to fund?
Low-volatility, low-yielding currencies may favour carry trade, but there are no high-yielding alternatives to buy
ECB cut could bring back the carry
A rate cut and negative deposit rates from the ECB could bring back the popularity of the carry trade, strategists say
Host Capital taps Citi index for retail-focussed currency fund
New UK-regulated fund will invest in Citi's Carry & Value index to provide exposure to G-10 and emerging market currencies
Diversified portfolios exposed to correlation risk, experts warn
Politics is a greater driver of G-4 currencies than traditional economic fundamentals, say panellists at CME event
Responding to change
Purnur Schneider and Christopher Cruden at Insch Capital Management in Lugano, Switzerland, use the Black-Litterman model to test strategies designed to work in changing market conditions