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.
- Sõnaliik: noun
- Valdkond/domeen: Financial services
- Category: General Finance
- Company: Bloomberg
0
Looja
- Jessehe
- 40.13% positive feedback