“Because of the significant impact on performance these results demonstrate, as well as the June 10th timeline set by regulators, it is apparent that portfolio managers must examine their own hedging strategy based on expected cost of clearing with a renewed urgency.”
“Because of the significant impact on performance these results demonstrate, as well as the June 10th timeline set by regulators, it is apparent that portfolio managers must examine their own hedging strategy based on expected cost of clearing with a renewed urgency.”
—Ben Larah, manager at Sapient Global Markets, on how the increase in hedging costs post-Dodd Frank will lead to a drag on fixed income portfolio returns.