Finance Seminar with Clemens Sialm, McCombs School of Business, University of Texas at Austin

The Department of Finance is proud to announce the upcoming online seminar with Clemens Sialm, McCombs School of Business, University of Texas at Austin.

Clemens Sialm will present: 

Currency Management by International Fixed Income Mutual Funds

ABSTRACT
Investments in international fixed income securities are exposed to significant currency risks. We collect novel data on mutual fund currency derivatives and document that over 90 percent of U.S. international fixed income funds use currency forwards to manage their foreign exchange exposure. Fund currency strategies differ substantially based on risk management demands related to the currency denominations, speculative demands such as currency momentum and carry trade, and incentives related to past performance and fund clienteles. Funds that hedge their currency risk exhibit lower return variability, but do not generate inferior risk-adjusted returns.

Find the paper here.

Location and sign up:
This is an online seminar on Zoom.
Please contact us in order to sign up.