Thursday, August 9, 2018

Currency Crowdedness Generated by Global Bond Funds

"Bond managers rely on currency beta strategies. Both the G10 and Global carry and the value strategy are preferred by professional bond investors... Bond managers [should] pay closer attention to the return attribution of ... currency management, [because] global bond fund returns can be related to currency-risk factors, [and] alpha-generating currency management could improve diversification and the risk-return ratio in a global bond portfolio."

KONSTANTINOV, G. (2017). Currency Crowdedness Generated by Global Bond Funds. Journal Of Portfolio Management, 43(2), 123-135.

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