Hanjin shipping troubles and Samsung related issues
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perhaps tighter monetary policy and some protectionist’s measures.
and the news flow suggests a referendum by April/May. In a
and the credit remains a solid BB+ fundamentally
vol is cheap vs rates and the skew the least expensive in that sector.
we think vol and skew have room to reprice higher compared to the repricing
and the BoJ defending its JGB yield target. We do
2y2y and 2y1y that the selloff would be largest (75-85bp
% (Volatile markets and USD/CNY at 8.00)
onshore FX swap and forwards would be the next
Frankel and Wei (2007) for a detailed explanation.).
followed by Japan and Europe. Inflows to China could be
capital mobility restrictions and beneficial ownership.
short SGD/INR and long PEN/CLP. For more neutral
as they are highly correlated with USD and carry