Currency Management

Currency Management - Articles & White Papers

Articles and white papers on currency management. This section is for research relating to the theory of currency management, the processes for managing currency risk, and methods of forecasting the currency outlook. A separate section for the current FX market outlook can be found in the "markets outlook" section. The most read reports in this section relate to managing currency exposure, managing currency risk, and the case for hedging foreign investments. The most common risk factors used in currency markets all feature prominently in our research library: the carry factor (interest rate differentials), the momentum factor (trend-following) and the value factor (whether measured by PPP, equilibrium exchange rates, or some other method). The first two have been used successfully in developed markets for many years. Interesting research in this section examines the applicability of these risk factors to emerging markets, and analysis of the currency carry trade for Latin America in particular. In terms of non-currencies discussed in this section, gold has traditionally been the alternative to fiat currencies, but today the cryptocurrency Bitcoin is also jostling for recognition. A number of white papers on Bitcoin appear in this section, examining different aspects to Bitcoin: Bitcoin exchange rates, understanding cryptocurrency, establishing whether Bitcoin is a real currency and how digital currencies can be regulated. This section contains papers of interest to currency managers, asset allocators, multi-currency money managers, global macro managers, multi-asset managers and FX sales.