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.

FX Dashboard: Time to Hedge EM FX with Euro Again

FX Dashboard: How Have the Sensitivities of EM FX to US Dollar Evolved?

FX Dashboard: Spillover Risk from China to EM FX

FX Dashboard: Is Korean Won’s Underperformance Overdone?

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

FX & Rates

<p>In this week’s Alpha Bites, we recommend buying the Korean won (KRW) against the Chinese renminbi (CNY). The won has underperformed partly because of the low carry and FX interventions, with the recent missile test by North Korea and downgrading of the country’s potential growth by the central bank adding to the negative sentiment. Meanwhile, the renminbi is not reflecting the ongoing growth weakness in the country or pricing any risk premium related to the acute sell-off in Chinese equities. With the two currencies trading at extremes, we recommend the KRW against CNY cross in a beta-neutral ratio.</p>

In this week’s Alpha Bites, we recommend buying the Korean won (KRW) against the Chinese renminbi (CNY). The won has underperformed partly because of the low carry and FX interventions, with the recent missile test by North Korea and downgrading of the country’s potential growth by the central bank adding to the negative sentiment. Meanwhile, the renminbi is not reflecting the ongoing growth weakness in the country or pricing any risk premium related to the acute sell-off in Chinese equities. With the two currencies trading at extremes, we recommend the KRW against CNY cross in a beta-neutral ratio.

Alpha Bites: Long Korean Won Vs Short Chinese Renminbi