The BIS Triennial Central Bank Survey 2019 was released last month with results that many may find surprising. Volume of trading is up significantly since 2016. The dollar is even more dominant in trading since the last survey. Trading with non-dealer institutions is now over fifty percent. After the slowdown between the 2013 and 2016 survey, trading has reached new highs.
Capital flows across countries continue to grow as investor search for returns and borrowers look for cheap funding. Active hedging has lead to strong volume increases. For investors, value, carry, momentum, and volatility alternative risk premia have all increased as changes in macro fundamentals across countries have increased opportunities. Currencies as an asset class alternative should be a part of all diversified portfolios
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