More and more asset managers are reviewing operational functions like Currency Hedging and reassessing how they are managing their programs following some of the highest market volatility in years. Here, we explain some critical aspects for consideration.
Asset Managers face different challenges and have varying experiences and views when evaluating their current FX process/program. Below are some common misperceptions we’ve heard from our clients and prospects as they are about to embark on this review.
We created a simple 5-factor model to evaluate the restrictions imposed by different countries, how they compare in terms of severity of lockdown, and where they are heading in the spectrum of reopening. The scale we use measures grade restrictions from 1 (open) to 4 (closed) across the following factors: (a) schools, (b) non-essential businesses, (c) borders, (d) social distancing and (e) severity of penalties/prosecution.
As the coronavirus surges across the world, governments are taking unprecedented measures in order to protect their citizens and their economies and reduce its potential long-term effects on society as a whole.
This edition of our FX quarterly comes out a little later than usual. As March turned into April, there were simply too many uncertainties and unknown developments for us to make any sort of big picture calls with any degree of clarity or certainty. Those two months saw a flurry of policy responses around the globe that we will recount here.
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