January Effect Dollar Hedges

‘January Effect’ To Bring Down Cost Of Dollar Hedges

Just wait for January. That’s the message from Bank of America Merrill Lynch to foreign investors in U.S. credit hit by hefty premiums for dollar hedges. The bank expects hedging costs to decline by 58bps, perhaps a lot more.

“We think this (January) effect is very meaningful and as result expect foreign buying of U.S. corporate bonds to accelerate in January,” the bank said in a research note Dec. 19. One-month hedging costs should decline at least to 3-month costs, which currently implies a . . .

SORRY!

This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles
X
TextTExtLInkTextTExtLInk

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required


Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 11/30/2019 or after next 25 13 subscribers take advantage whichever comes first – please do not share this discount with others

 

0