Article published in Agefi Hebdo on 08/12/2022 :
Inflation, rising interest rates and currency mismatches are all risks that can be hedged, with varying degrees of complexity.
Extract from the article:
There was nowhere to hide in the financial markets in 2022. Except perhaps under a hedge. For insurers, hedging against rising interest rates is a classic way of protecting themselves against massive life insurance redemptions. In an environment of persistently low interest rates, for years the main advantage of hedging was to smooth earnings and protect solvency. But since the beginning of 2022, these products have finally been able to make money for their users. Inflation, another risk that has recently re-emerged, also raises questions.
The current economic environment is not sparing currencies either. Frédéric Petiniot, Managing Director of the investment consulting firm Amadeis, notes recent demand in this area:
We sometimes set up dollar hedges for our institutional clients. They can set up futures on their own, which remains complex; otherwise we recommend units in funds hedged against currency risk.
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