Jan 21, 2005 01:43
19 yrs ago
English term
New Zealand
Double qualification in law (Germany/NZ)
Native in: German 
, English
Works in: English to German, German to English, French to German, and 1 more.
hedge out of
English to German
Bus/Financial
Investment / Securities
Asset management
Aus dem Quartalsbericht eines Investmentfonds:
The portfolio has a hedge out of the Euro and into the Japanese Yen to reduce the underweighting versus the benchmark
Bei dem Portfolio handelt es sich um ein Rentenportfolio. Mir ist der Zusammenhang zwischen Euro und Yen im Rahmen des Absicherungsverhältnisses nicht klar - würde mich über eine Erklärung von Kollegen mit fundierten Kenntnissen auf diesem Gebiet freuen.
The portfolio has a hedge out of the Euro and into the Japanese Yen to reduce the underweighting versus the benchmark
Bei dem Portfolio handelt es sich um ein Rentenportfolio. Mir ist der Zusammenhang zwischen Euro und Yen im Rahmen des Absicherungsverhältnisses nicht klar - würde mich über eine Erklärung von Kollegen mit fundierten Kenntnissen auf diesem Gebiet freuen.
Proposed translations
(German)
| 4 | Added note |
Ralf Lemster
|
| 4 | (Euro) ist abgesichert gegen (Yen) |
Eralp Tuna
|
Proposed translations
4 hrs
Ralf Lemster
Germany
Germany
Native in German
Specializes in field
Germany
The language of financial markets
Native in: German
Works in: English to German, German, German to English, and 1 more.
Related KudoZ points
:
1620
Selected
Added note
I support Eralp's translation - just to add some background on the structure discussed here.
This refers to the duration of the various portfolio positions. The fund's euro position has a longer duration (compared to the benchmark) whereas the yen position has a shorter duration. IOW the risk exposure to the euro yield curve is higher than that prescribed by the benchmark index.
This is based on the expectation that euro-denominated bonds will outperform yen-denominated issues. This weighting also has implications for the fund's currency position - however, since the expectation is based on a view regarding yield differentials (rather than on a currency outlook), they need to eliminate the currency mismatch which is created as a result of the strategy.
This refers to the duration of the various portfolio positions. The fund's euro position has a longer duration (compared to the benchmark) whereas the yen position has a shorter duration. IOW the risk exposure to the euro yield curve is higher than that prescribed by the benchmark index.
This is based on the expectation that euro-denominated bonds will outperform yen-denominated issues. This weighting also has implications for the fund's currency position - however, since the expectation is based on a view regarding yield differentials (rather than on a currency outlook), they need to eliminate the currency mismatch which is created as a result of the strategy.
4 KudoZ points awarded for this answer.
Comment: "Danke euch beiden. Die Punkte gehen an Ralf, weil mir eine Erklärung besonders wichtig war."
4 hrs
Eralp Tuna
Türkiye
Türkiye
Türkiye
neat & reliable
Native in: Turkish
Works in: English to Turkish, German to Turkish, Turkish to English, and 3 more.
(Euro) ist abgesichert gegen (Yen)
The case is like this as far as I understand:
the fund is overweighted in Euro and underweighted in Yen. (The composition of the fund is nor equally balanced, having more Euros assets when compared with Yen assets). This is not fixed, the composition changes sometimes, but as a whole Euro has an "overweighted duration", which means throughout the time Euro is more weighted in general.
So sometimes (maybe when Yen starts to gain against Euro) they try to increase the weighting og the Yen by hedging against Euro (they cannot rush and make new rent contracts, for hedging purposes just they must be buying cash or future Yen against Euro).
Simply, to say "Euro ist abgesichert gegen Yen" would be most appropriate I think.
the fund is overweighted in Euro and underweighted in Yen. (The composition of the fund is nor equally balanced, having more Euros assets when compared with Yen assets). This is not fixed, the composition changes sometimes, but as a whole Euro has an "overweighted duration", which means throughout the time Euro is more weighted in general.
So sometimes (maybe when Yen starts to gain against Euro) they try to increase the weighting og the Yen by hedging against Euro (they cannot rush and make new rent contracts, for hedging purposes just they must be buying cash or future Yen against Euro).
Simply, to say "Euro ist abgesichert gegen Yen" would be most appropriate I think.
Peer comment(s):
| neutral |
Ralf Lemster
: The translation is correct, but the explanation would fit equity holdings - this refers to duration positions which differ from the benchmark - see my added note
25 mins
|
Discussion