FX Markets

How much do managers rely on their top bank?

Asset managers that use a lot of FX forwards also use a lot of dealers to get those trades done; managers that execute fewer trades use fewer dealers. That’s no shock. The data becomes more interesting when you get past the averages, where panel sizes – and the share of business given by each manager to its top counterparty – can vary significantly. As an example, in the second quarter of last year, just 11% of Pimco’s trades had been executed with its number one dealer, while the same was true for fully 30% of PGIM’s book.