Trillions of US Dollars To Sell?!

Trillions of US Dollars To Sell?!

Published on Apr 25
1925
The Macro Trading Floor
This week, Alf and Brent focus on an obscure yet crucial component of FX flows: the hedging needs from large institutional investors. These whales own $33+ trillion of USD-denominated assets, and over the last 15 years they have systematically under-hedged their USD exposure - were they to change their mind forecasting a weaker USD, there could be trillions of US Dollars to sell.