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GMO: Currency hedging may increase tail risk
trueHedging currency exposure increases tail risk in equity portfolios by increasing the notional exposure, “and therefore the magnitude of possible return or loss,” according to a GMO white paper released Monday.
Why European equity markets deserve a second look
trueEuropean growth is low by any standards. We expect 1.2% from the eurozone this year, in line with the latest International Monetary Fund forecast, while the fund is looking for 2.4% from the advanced economies as a whole and 3.6% from the U.S.
The big structural upside in Japanese equities
trueThere is reason to believe that Japan is on the precipice of reordering its domestic savings structure as soon as this year, with potentially significant implications for its equity markets.
Strong dollar highlights desire for currency hedging
trueCurrency-hedged ETFs are as hot as the dollar.
POLL: With the dollar and euro near parity, how long will it last?
trueThe dollar and the euro are near parity for the first time since 2002. How long do you think it will last?
Currency hedging up with the dollar
trueThe strengthening U.S. dollar is pushing renewed efforts by pension fund executives to hedge currency risk in their portfolios.
Ruble, ruble, oil and trouble
trueIt's natural to wonder if, like the three witches in Macbeth, the year's events are harbingers for additional strife and trouble. However, if one were to heed the negative headlines and "pack it in" for 2015, one is likely to miss the opportunities that currently present themselves as fear ...
Managers surprised by scope of ECB's bond-buying program
trueThe European Central Bank announced it will begin €60 billion ($69.4 billion) of public and private debt purchases per month as part of a quantitative easing strategy, in what money managers said was a surprise move in terms of size and one that is expected to further weaken the euro and spark ...
Kansas Public Employees charts currency overlay search, commits $240 million
trueKansas Public Employees Retirement System will issue an RFP for a firm to provide currency overlay management services in the second half of 2015.
Casualties from Swiss franc shock spread
trueShares in the largest U.S. retail foreign-exchange brokerage slumped in pre-market trading and their opening was delayed in New York as upheaval caused by a surge in the Swiss franc rippled from New Zealand to the U.S.
Swiss central bank scraps minimum linkup with euro
trueThe Swiss National Bank, the central bank for Switzerland, abandoned its minimum exchange rate vs. the euro due to a weakened value against the dollar as a result of increased monetary policy divergence.
PIOnline : Subscription Center
trueOne of the most obvious outcomes of diverging monetary policy has been the depreciation of currencies in an effort to make markets more attractive. The euro vs. dollar was at 1.23 on Dec. 18, compared with 1.37 for the same date in 2013.
Institutions wary about Russia
trueFalling oil prices, a plummeting currency, sanctions and the threat of capital controls in Russia are forcing investors and index providers to intensify their focus on that market.
New concerns arise for asset owners, but an old one never left
trueAsset owners will have some relatively new worries in 2015 — geopolitical risk, oil-price declines and the impact of changes in mortality tables on funding — but there’s also a familiar concern revolving around interest rates.
Regulators levy $4.4 billion in fines on banks for forex manipulation
trueCitibank, HSBC, J.P. Morgan Chase, Royal Bank of Scotland and UBS received a combined $3.4 billion in penalties from U.S., U.K. and Swiss regulators for manipulating foreign exchange benchmark rates to benefit certain traders from 2008 to 2013.