Hedging costs hit arbitrage managers amid QE fear

Relative value managers raced to short their Treasury positions after the US Fed hinted at tapering in May, borrowing from the repo market. But demand saw hedging costs spiral.


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How will you alter your portfolio after the US election result?





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Underweight US
  16%
 
Overweight US
  42%
 
Underweight EMs
  7%
 
Raise cash levels
  20%
 
No change
  14%
TOTAL VOTES: 146
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December 2016/January 2017 Magazine
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