Search
 
News

Trade War May Be Impacting Global Flow of Capital

There’s one market where an inverted curve is already causing pain for portfolio managers: foreign exchange.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Ben Emons, chief economist and head of credit portfolio management at Intellectus Partners, highlighted the inversion in some currency volatility curves as another channel through which angst over potential shifts to the global trading order are weighing on equities around the world.

The one-month implied volatility of the U.S. dollar relative to the yuan now trades at a premium to that of the one-year contract, a shift that’s occurred amid the greenback’s 3 percent advance versus the Chinese currency over the past two weeks.

This doesn’t get nearly as much attention as yield curve inversions, but it’s still a clear negative for markets because it encourages portfolio managers to take less risk abroad, according to the strategist.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

The Currency Winds Have Shifted

The Currency Winds Have Shifted

T&R Staff |

After Kyriba’s Q1/2022 “Currency Impact Report” showed FX boosting multinationals’ earnings by more than $9 billion, the Q2 report shows that currency headwinds reduced corporate profits by a total of $4.56 billion in North America alone.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.