BNP Paribas launches alternative to carry-trade strategies
BNP Paribas has launched two new foreign exchange indexes, Galaxy Alpha and Galaxy Alpha Plus, aiming to offer an alternative to traditional carry-trade strategies, which have underperformed this year amid extreme volatility in forex and interest rate markets.
The indexes seek to extract outperformance between a dynamic basket, selected every month based on the currencies with the highest interest-rate differentials, and a fixed benchmark basket of traditional currency pairs. The dynamic basket
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