Sentences with phrase «forward currency contracts»

Single currency portfolios seek to profit by investing in a single currency through the use of short - term money market instruments, cash deposits, and derivatives, such as forward currency contracts, index swaps, and options.

The S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY) and the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY Hedged) both track the same bonds with returns represented in Japanese yen, while the latter is hedged in an effort to eliminate currency exposure through a one - month forward currency contract.

USDU uses derivatives (enters into forward currency contracts with counterparties), so deviations from spot exchange rates aren't out of the question.

The fund holds forward currency contracts to hedge much of the currency risk embedded in international bond investing.

The Fund continued to utilize forward currency contracts, which had a minor negative impact on the Fund's performance during the period.

Multicurrency funds seek to profit by investing in an array of global currencies through the use of short - term money market instruments, cash deposits, and derivatives, such as forward currency contracts, index swaps, and options.

These assets are separately compared against the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY), which is calculated in Japanese yen, and the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY Hedged), which tracks the same bonds with returns represented in Japanese yen but is hedged in an effort to eliminate currency exposure through a one - month forward currency contract.

One key difference between a currency option and a forward currency contract is that you are not obligated to take action with an option.

Most of the money has been turned over to the oligarchic banks in settlement of «forward currency contracts» that are, in effect, no - lose gambles against the ruble.

A forward currency contract is an agreement by two parties to transact in currencies at a specific rate on a future date and then cash settle the agreement with a simple exchange of the market value difference between the current market rate and the initial agreed - upon rate.

Lower Historical After - Tax Returns in Taxable Accounts U.S. currency - hedged products have historically been notorious for distributing significant amounts of capital gains to its investors, mainly due to the «rolling» of their forward currency contracts.