The nature of an institutional investor’s liabilities will dictate the general investment strategy to pursue. Depository institutions, for example, seek to generate income by the spread between the return that they earn on their assets and the cost of their funds. Life insurance companies are in the spread business. Pension funds are not in the [...]
Most of the currency crises of the 1990s happened against soft currency pegs. In the wake of the Asian currency crisis, I made a stab at creating a model which focused on how exchange rates typically performed in the run to and after the break down of a pegged exchange rate regime. For good or [...]
The four analytical disciplines of currency economics, flow analysis, technical analysis and long-term valuation which come together to make a currency strategy decision can be expressed in the form of a signal grid. To be sure, this is a very simple model. However, what is important here is having the discipline to create it. Only [...]