The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Protect your ass(ets)

Much attention has been given this week to the impact on the euro of a downgrading of several EMU members long-term currency sovereign credit ratings. To add to the negativity – and being negative is in vogue – Ireland was reported to be about to go cap in hand to the IMF for a bail out, giving credence to a recent joke: Q: What’s the difference between Ireland and Iceland? A: One letter and six-months.


In such trying times, investors are wondering how best to protect their assets. One of my Euromoney colleagues wrote a good piece in this month’s magazine about the folly of using credit default swaps to hedge G10 sovereign debt. “Let’s face it, if the UK defaults there won’t be banking system left to make a claim,” he argues. This looks like risk management taken to a ludicrous extreme.


Elsewhere, as I have written, quite a few Retail Johnnies are piling into physical gold, which I just don’t get. After all, if Armageddon does materialise I can’t see anyone accepting a metal trinket for food or fuel. No, the best way to protect your assets will be with a shotgun.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree