By Eric Peters CIO of One River Asset Management
Flows
“Stocks and bonds are a hard trade in here,” said the risk-taker, running one of the city’s biggest trading businesses in London. “But the dollar has a far way to run,” he said. “People tend to focus on hedge fund flows, but in FX it’s the corporates and pensions to really watch when the big trends kick off.” These guys own assets and assume liabilities denominated in a range of currencies and then choose whether to hedge their exchange rate risk. “They got way overexposed to dollars believing the EU would continue to struggle economically, Ukraine, etc.”
