Contributions

  • Medeiros, Karine Serfaty-de - Contributor
  • Viceira, Luis M. - Contributor
  • Harvard Business School - Contributor

Publication

2009 - Harvard Business School, Boston, Massachusetts

Language

English

Word Count

29,000 words, Guess

Page Count

116 pages

Identifiers

Description

Over the period 1975 to 2005, the US dollar (particularly in relation to the Canadian dollar) and the euro and Swiss franc (particularly in the second half of the period) have moved against world equity markets. Thus these currencies should be attractive to risk-minimizing global equity investors despite their low average returns. The risk-minimizing currency strategy for a global bond investor is close to a full currency hedge, with a modest long position in the US dollar. There is little evidence that risk-minimizing investors should adjust their currency positions in response to movements in interest differentials.

Subjects

Series Statement

  • Working paper / Harvard Business School -- 09-089

Other Editions

  • Global currency hedgingHarvard Business School2009

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