Bank ALM crisis leaves FX hedgers with steeper roll costs

- By Joe Parsons
- @Joe_Parsons416
- 23 Mar 2023

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Asset managers may need deeper pockets than usual to roll their foreign exchange hedges at the end of the first quarter, after stress in the US and European banking sectors filtered through to the market for forwards and swaps.

Spreads on three-month euro/US dollar forward points hit 1.49 pips on March 21, having been at 0.33 pips on March 8 – a more-than-fourfold increase in the space of nine trading days, with the biggest jumps coming on the Monday after the collapse of Silicon Valley Bank

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 print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.

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

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@fx-markets.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@fx-markets.com