A surge in uncollateralised international alternate forwards hedging from buy-side shoppers may put financial institution stability sheets beneath stress, sellers warn.
FX hedge ratios at asset managers and pension funds have not materially elevated in 2025, regardless of the selloff within the US greenback within the second quarter. This may increasingly change, although, as narrowing rate of interest differentials may scale back prices for international traders hedging their US property via FX forwards.
FX forwards and swaps trades between sellers and
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