Sat, Aug 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Why has it been such a difficult environment for currency traders ?

Friday, October 11, 2013

amb
Benedicte Gravrand, Opalesque Geneva:

Thomas Suter is CEO of Quaesta Capital AG, which manages in excess of $2.5bn in investment products and currency risk management mandates. He has more than 20 years of experience in financial markets and has been with Quaesta since its 2005 start. He recently spoke to Sona Blessing on Opalesque Radio about investing in currency strategies in the current environment.

The FX (foreign exchange) market, in which currencies are traded, is the largest financial market in the world, with currently around $5tln being traded daily.

Over the last five years, following the financial crisis, foreign exchange as an asset class has not done so well, Suter says. 2008 was a great year for FX and there was much enthusiasm around this asset class due to is liquidity, transparency and diversification (due to low correlation) benefits. Several banks, specifically Citibank and Morgan Stanley, started promoting new platforms supporting FX managers.

But the 2008 momentum faded away. There has not been much action among the major currency pairs, and low volatility. "Combine that with booming equity and fixed income markets and this has not been helpful for a topping of currencies as an investment opportunity," Suter notes.

According to the Bank for International Settlements (BIS), currency trading kept increasing in the first year of the financial c......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Performance - Hedge funds set to bank millions by short selling during London share slump, The China market chaos has made this hedge fund its most money in 2 years, Odey hedge fund said to surge 9% betting against China, Hedge funds with long-held bearish views on China rack up profits, Hedge funds in U.S. seen curbing damage from August turbulence, Hedge funds collect on their predictions of a fall, How did managed futures do while the Dow was down 1000[more]

    Hedge funds set to bank millions by short selling during London share slump From TheGuardian.com: Hedge funds are set to bank tens of millions of pounds from the slump in share prices in London, having bet almost £18bn that the FTSE 100 would fall. The funds making the bets include Lansd

  5. Opalesque Exclusive: John C Head IV leaves alternative investment firm Gallery Capital, David Harrison joins as co-CIO[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: John C Head IV, former president and co-founder of Gallery Capital Management, an alternative inv

 

banner