MSIM option strategy set for payout

Manager has spent over $400 million buying options that have yet to generate returns – until now

USDCNH

After years of lost option premiums, Morgan Stanley Investment Management’s bet on a weakened Chinese renminbi may finally pay off.

The recent drop in the offshore Chinese currency against the dollar has propelled one of the manager’s option positions into the money, making it the first time any position has been close to paying out in five years of running the strategy.

Totalling $9.4 billion notional with Goldman Sachs as the counterparty, the bought call options are on the books for at

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

The evolution of the sell-side front office: FX options

smartTrade is observing a significant trend among its clients and prospects: banks are increasingly enhancing their sell-side front office offerings by incorporating more sophisticated products such as FX options into their end-client solutions

Most read articles loading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: