RBS finds forex calm with new currency protection system
Royal Bank of Scotland (RBS) has created a new hedging technology to cope with foreign exchange volatility, which spiked earlier this year.
The structure, which goes by the name of Quampo, blends the features of quanto technology, a currency hedged investment, with compo, where foreign exchange exposure is not hedged.Quantos are typically used to convert investments with foreign market exposure back into payout currencies at a fixed rate, but became too expensive after foreign exchange
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