13min chapter

Forward Guidance cover image

Althea Spinozzi on Stagflation, Term Premia, and Ultra Long-Duration Bonds

Forward Guidance

CHAPTER

Hedging Costs and Yield Curves

This chapter explores the hedging costs of converting dollar risk into the Japanese yen and how it relates to the yield curve and interest rate differentials. It discusses the impact of the shape of the yield curve on hedging costs and investment strategies, as well as the potential return to quantitative easing by the Federal Reserve.

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