Carry trade
Hedge funds take profit on vol trades with Trump win
FX volatility drops sharply as positions unwind; rates market sees mixed reaction
Dealers bruised by surprise renminbi vol surge
Rush to re-hedge USD/CNH exotics left banks in grip of painful short gamma squeeze
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’ pricing often trumps other buy-siders – SNB
Research shows “advantageous” prices result in outperformance of 139bp trading USD/CHF
Uncertain rates outlook poses challenge for corporate FX hedgers
Hedging programmes may need a revamp as EM/G10 rates differentials narrow
Hedge funds turn to exotics for EM carry trades
Traders eye dual digitals to cheapen up carry plays
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