Politics heightens FX risk for sterling and yen investors
Risk models show the yen to be the riskiest developed currency
Institutional investors with yen- and sterling-denominated multi-asset portfolios face higher short-term foreign exchange risks than their peers, according to new research – a situation that could be exacerbated by political uncertainty and its impact on currency markets.
In its white paper FX Trumps Correlation, Axioma, a provider of risk management and portfolio construction solutions, found that in the aftermath of the US election, the unusually strong correlation between asset classes
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