According to Pension & Investments, Ray Dalio and his team at Bridgewater Associates recently
purchased interest rate swaps in their All Weather risk parity fund to reduce their real yield exposure.
Not exact matches
By
swapping those assets that are currently trading below the
purchase price (due to a rise in
interest rates, deteriorating credit situation, etc.) you can reduce or eliminate the capital gains you would otherwise have paid on your other profitable transactions in the current tax year.
Large bond investors not restricted by the FPR like insurance companies have «asset
swapped» into foreign issuers by
purchasing their bonds directly and using currency and
interest rate swaps to convert the cash flows to Canadian dollar.