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Currency Overlay

Amazon.com Price:  $91.70 (as of 12/05/2019 16:43 PST- Details)

Description

Currency overlay is the management of the currency exposure inherent in cross-border institutional investments. Exposure to foreign exchange increases the volatility in their returns, without increasing the returns themselves and academics and consultants beneficial that the currency exposure will have to be stripped out of international portfolios and eliminated so far as practicable.

This book provides a comprehensive description of currency overlay, its history and imaginable future developments and growth, the cause of its emergence, the debates and controversies, the different styles of currency management, and the industry’s performance track record.

This is a topic of international appeal and is an area of particular growth potential for institutional investors.  Coverage includes:

  •  The theoretical case for getting rid of currency risk in international portfolios
  • The interplay between asset returns and currency returns, and the 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 (currency alpha)
  • Uses diagrams, charts, tables and explanatory boxes to provide an explanation for concepts

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