Packaging Exposure to China

Risks usually come in a bundle. If you want exposure to a particular factor risk – or you want to hedge that particular risk and concentrate your exposure onto other factor risks – you may have to find a way to create that exposure synthetically. Investment managers are constantly looking for ways to do this. The Financial Times had a nice piece on getting exposure to China risk. Hedge fund manager Hugh Hendry seems to think that a portfolio of Japanese corporate bonds has a big China exposure.

This entry was written by John Parsons, posted on October 6, 2010 at 2:38 pm, filed under exposure, packaging risk. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

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John Parsons
MIT
Antonio Mello
UWisconsin
About this blog

We use this blog to discuss with our students issues in risk management for non-financial corporations. The blog addresses interesting events in the news, as well as advances in financial analysis. We have made the blog public to encourage valuable contributions from former students, colleagues and others in industry, government and academia.

The content of the blog is closely aligned with the material in our lecture notes on Advanced Corporate Risk Management (MIT course 15.423). A website with the notes and associated materials will be coming soon.
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