Home > Term: covered interest arbitrage
covered interest arbitrage
Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars.
- Μέρος του λόγου: noun
- Κλάδος/Τομέας: Financial services
- Category: General Finance
- Company: Bloomberg
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Δημιουργός
- Jessehe
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