Tag: currency overlay

currency overlay

In the FICC of It

This week’s podcast roars through a huge range of subjects and features Colin Lambert lamenting the demise of “crazy” hedge funds and Galen Stops questioning how much value there really is in the swathe of market data products coming to the market.
Our two podcasters also take a look at TCA and ask, “does it really add value?” They delve deeper into the real challenges facing corporate treasuries (hint: it’s not execution) and the value, or otherwise, of them using currency overlay programmes; roll through the FX Global Code and into the end of the class action against Deutsche Bank over last look; and end up with exciting news for listeners attending Forex Network Chicago.

And the Pendulum Swings Back

Institutional investors have long understood the value of diversifying their portfolios, and this usually means investing internationally.

But when they buy foreign equities, they’re actually buying two portfolios, the first being the long equities denominated in their base currency, and the second is that they’re shorting their base currency against the foreign currency they need to purchase the equity.

This presents institutional investors with a choice: they can do nothing and accept the risk of holding this foreign currency, hedge that currency exposure passively or manage it actively.

Green Joins Lumint as EVP

Currency overlay manager Lumint has hired David Green as an executive vice president. He will continue to be based in Boston in his new role.

Prior to joining Lumint, Green was a managing director and global head of FX Connect sales and relationship management at State Street.

Before that, he spent 20 years at BNY Mellon over two different stints at the custodian bank. He worked in a number of different roles there, but most recently as a managing director and global co-head of FX sales.

Green also spent time as a vice president, FX sales, at ABN Amro and, at the beginning of his career, as a bond trader at Putnam Investments.

P&L Talk Series With Moises Michan

Moises Michan, managing partner at Tanridge Capital, talks about the benefits of FX within a portfolio and explains how firms can benefit from more active hedging strategies

Profit & Loss: How long has Tanridge Capital been trading now?

Moises Michan: We started the firm about two years ago. We’re an FX-focused asset manager with three main products: alpha strategies, passive overlay and active overlay.

P&L: Prior to this you were on the bank side, correct?

MM: Yes, it was working on the bank side that I noticed a real gap in the FX market.