Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McGuire
Author-Name: Ilhyock Shim
Author-Name: Hyun Song Shin
Author-Name: Vladyslav Sushko
Title: Outward portfolio investment and dollar funding in emerging Asia
Abstract: The growing heft of institutional investors and asset managers in several Asian economies has fuelled expansion in outward portfolio investment, mainly in US dollar-denominated assets. This investment is predominantly in long-term instruments but is hedged for currency risk mainly through short-term derivatives. The rollover risk in currency hedges exposes these non-bank investors to stress in dollar funding markets, as occurred in March 2020. Some Asian economies have since strengthened regulatory frameworks to address dollar funding-related vulnerabilities of resident institutional investors and asset managers
Journal: BIS Quarterly Review
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2112d.pdf
File-Format: Application/pdf
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2112d.htm
File-Format: text/html
Year: 2021
Month: December
Classification-JEL: F21, F34, G15, G23.
Handle: RePEc:bis:bisqtr:2112d