Apositionthat is nothedged. That is, theholderof a naked position has taken no step to reduce theriskinherent to the position. For example, if onebuys100sharesof AT&T, one is exposed to the risk that AT&T will decline inprice. If one takes no action to prevent this (by buyingput optionsorshort sellingAT&T, for instance), oneholdsa naked position in AT&T. Avoiding naked positions and hedging as much risk as possible is a substantial concern for manyinstitutional investors.A security position, either long or short, that is not hedged. For example, an investor short 500 shares of IBM with no other position in IBM stock (such as ownership of calls) has a naked position in that security. Because a naked position subjects the investor to large potential gains or losses, it is an aggressive investment position.
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If you have a view that the dollar will weaken, you want to be
Currency-Hedged ETFs: Making the Case for U.S. Investors
4tn of this outstanding credit is held by Chinese corporates, mostly
Tight dollar liquidity squeeze around the world: QNB report
4 trillion of this outstanding credit is held by Chinese corporates, mostly
QNB: Are we in for another US Dollar squeeze?
The analysts said, We would not recommend dollar funding, on an
basis, for businesses which only have rupee earnings.
Citigroup warns Indian companies to avoid unhedged overseas debt
This intervention has the effect of either adding
foreign reserves to its stock of hedged reserves when the exchange rate is judged to be relatively overvalued, or by actually going short on foreign currency and long on the NZD, when the exchange rate is judged to be relatively undervalued.
The currency denomination of New Zealands unhedged foreign reserves
It is still possible to do a short sale against the box and avoid constructive sale treatment if the taxpayer meets the clearly enumerated exceptions of closing within 30 days after the end of the tax year and holding the remaining long position
When financial intermediaries, in addition, seek low-cost,
foreign currency funding, the dangers of depositor runs, after a fall in the domestic currency, escalate.
Statement by Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, before the Committee on Banking and Financial Services, U.S. House of Representatives, January 30, 1998
The Indian central bank on Tuesday proposed that banks should set aside additional funds as provisioning against loans to companies that have
-Central bank of India proposes higher provisioning for unhedged forex exposure
Uniform Individual Accident and Sickness Policy Provisions Act
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