Investors urged to look at hedges as cost falls
Market upsides still outweigh downsides but caution needed
INVESTORS should consider buying relatively cheap hedges to protect their portfolios, while looking for opportunities in illiquid markets like private equity, real estate and hedge funds, advised Citi Private Bank in its 2014 outlook briefing.
Citi global chief strategist Steven Wieting said yesterday: "It is cheaper to hedge risk now. The insurance cost in the credit default swaps market has collapsed."
Investors usually trade options and futures on equity, credit or foreign exchange markets to protect their investments against various business risks. Volatilit…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Telegram messaging service to allow Tether stablecoin payments
Hong Kong regulator to probe PwC auditing role over Evergrande
US: S&P, Dow open flat as Middle East jitters ease, Netflix weighs on Nasdaq
DBS puts 46 retail units, HDB shops on market for S$210 million
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade