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Yes, it’s a completely sensational headline. Anyone with a modicum of knowledge about international finance knows that FX swaps are used to hedge currency risk
by WastingMyTime89 4y ago
Yes, it’s a completely sensational headline.
Anyone with a modicum of knowledge about international finance knows that FX swaps are used to hedge currency risk.
As far as I know (not much to be fair - my business school education is far away and I don’t work in the field), they are not a very popular speculative investment.
- CyanBird 4y ago> they are not a very popular speculative investment. That's the thing that's being argued from bis. That they have become popular speculative investments in wallst
- kasey_junk 4y agoIt’s very much not being argued that the increase is due up speculative wall st bets. The bis report quite clearly points out that the vast majority of the swaps market dollar obligations are outside of the us and nothing about the report suggests it’s due to speculation. Rather it’s about the central bank policy issues with the way the swaps are accounted for and their short term nature.