Currency risk management that is outsourced to specialist firm otherwise called the overlay manager. Most often used for international investment portfolios the overlay manager acts as risk manager to limit risk from adverse movements and to assist in profit building. Hedging is conducted by overlay manager on behalf of firm in order to achieve firm's objectives. Most currency overlay is specialized for example profiting from currency movements.
Related information about currency overlay:
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Currency overlay is a financial trading strategy or method conducted by specialist firms who manage the currency exposures of large clients, typically institutions ...
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Currency overlay generally refers to the separate management of currency risks ... A currency overlay is used to separate currency risk from the risk of the ...
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Apr 29, 2010 ... This explains, why in principle there is a lot of interest in neutralizing currency risk through hedging or currency overlay, as professionals call it.
- Currency Overlay - Financial Dictionary - The Free Dictionary
The practice of using a firm specializing in currency hedging. This firm is called the overlay manager. The overlay manager takes a number of positions in ...