Inside State Street’s bid to dominate FX overlay

Custodian looks beyond its usual client base in the hunt for currency hedging business

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For State Street’s currency overlay business, size matters.

With $335 billion in hedged assets under management as of the end of 2021, State Street Global Markets is the world’s largest outsourced currency overlay manager. Yet the firm isn’t stopping there. Its growth plans involve breaking a historical alignment that sees institutional investors using their own custodian or administrator for foreign exchange overlay.

By severing that bond, SSGM believes it can unlock a lucrative new stream of

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