Fixed Income and Currency Strategist

Gautam Jain, PhD, CFA

Gautam Jain has over 25 years of experience covering global emerging fixed income and currency markets, both as a strategist and a portfolio manager. He has worked in buy-side and sell-side firms, including The Rohatyn Group (TRG Management), Barclays Capital, and Millennium Partners. He has helped manage emerging markets local-currency and hard-currency debt funds. The assets that he covers include currencies, interest rates, sovereign credits, and related derivatives. He specializes in portfolio construction, smart-beta index creation, and asset allocation. Mr. Jain holds a Ph.D. in Operations Research from Columbia University and is a CFA charter holder.

Is Carry Driving the Returns of EM Currencies?

Will Latin American Currencies Continue to Outperform Against Asia and CEEMEA?

Implications of Higher Dollar Volatility for EM Currencies

Value of Euro as a Hedge for EM Currencies in Times Like These

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

FX & Rates

<ul>
<li>The shekel has been the worst-performing currency in EM since late November with potential Fed hikes and hedging activity related to the sell-off in international stock markets weighing on it.</li>
<li>The shekel should resume its appreciating trend as the central bank would likely raise rates this year with inflation making a comeback and the balance of payment position remaining strong.</li>
<li>I recommend funding the shekel in British pounds to minimize exposure to the dollar, which continues to be volatile, and the BoE is further along in its rate-hiking cycle.</li>
</ul>


The shekel has been the worst-performing currency in EM since late November with potential Fed hikes and hedging activity related to the sell-off in international stock markets weighing on it.
The shekel should resume its appreciating trend as the central bank would likely raise rates this year with inflation making a comeback and the balance of payment position remaining strong.
I recommend funding the shekel in British pounds to minimize exposure to the dollar, which continues to be volatile, and the BoE is further along in its rate-hiking cycle.


Alpha Bites: Long Israeli Shekel (ILS) Vs Short British Pound (GBP)