## Dollar repatriation? Different story told by cross currency swap

Intro Cross-currency basis swaps, also known as basis swaps, are contracts in which two counterparties agree to exchange interest payments according to two floating rates as well as notional principals denoted in two different currencies. Theoretically, covered interest rate parity should hold in absence of arbitrage opportunities. Here S and Read more…

## Brazil’s “Real” Struggle: what’s next?

In this article we are going to analyse Brazil’s next General elections, scheduled to be held on October 7 (i.e. today). The first section will present some basic information about Brazil and a brief background on the current political situation. The second part will present key factors on the Brazilian Read more…

## Volatility Play on the Hidden Gold-Yuan Peg

Reserve Currencies A reserve currency is defined as a currency held by government for international payment purposes. The most important usages are: Repay back international debt (generally issued in reserve currencies) Defend the domestic currency against depreciation Improve the government credit rating Reserve currencies are many. The IMF chooses the Read more…

## A Primer on FX Carry Trading

Carry Trades and the Interest Parity Condition The uncovered interest rate parity (UIP) condition states that, under risk neutrality, the gain from borrowing a low interest rate currency and investing in a higher interest rate one will, in equilibrium, be matched by an equally large expected loss by a depreciation Read more…

## Market Recap 05-03-2017

Market Recap 05-03-2017 United States Despite experiencing a downward correction towards the closing of the week, US equity indices reached new record levels. The Dow Jones Industrial Average reached a new record level by breaching the 21.000 mark. On Wednesday, it peaked at 21.115, to close the week at 21.005, Read more…

## Market Recap 26-02-2017

United States Last week was a particular good one for American equities. Indeed, the Dow Jones Index scored four record high closures in a row, up 0.96% from last week’s close. Smaller gains were scored also by the S&P 500 (+0.69%) and the Nasdaq Composite (+0.12%). It is worth noting Read more…

## MARKET RECAP 15/03/2015

U.S. U.S. equities experienced a negative performance during the past week. Stocks suffered sharp losses also on Friday and the main indexes registered a decline for a third week in a row, finishing what has turned out to be a turbulent five-day trading stretch. The Dow Jones industrial average fell Read more…