BEUC

Piero Cipollone: Innovation, integration and independence: taking the Single Euro Payments Area to the next level

Retrieved on: 
Thursday, April 25, 2024

This paper investigates the sensitivity of the demand for safe government debt to currency unhedged and hedged excess returns in a sample of US mutual funds.

Key Points: 
  • This paper investigates the sensitivity of the demand for safe government debt to currency unhedged and hedged excess returns in a sample of US mutual funds.
  • We find evidence of active rebalancing towards government bonds that offer relatively higher returns on an unhedged basis, in particular euro denominated securities.