Exchange Currency

covered interest rate arbitrage

CIA. A strategy in which an investor purchases an investment denominated in a foreign currency, and then hedges the foreign exchange risk by selling a forward contract in the same foreign currency.

Related information about covered interest rate arbitrage:
  1. What is covered interest rate arbitrage? - InvestorWords.com
    Definition of covered interest rate arbitrage: CIA. A strategy in which an investor purchases an investment denominated in a foreign currency, and then hedges ...
     
  2. Forex Glossary - Covered Interest Rate Arbitrage
    An arbitrage approach which consists of borrowing currency A, exchanging it for currency B, investing currency B for the duration of the loan, and, after taking off ...
     
  3. Covered Interest Rate Arbitrage in the Interwar Period and the - JStor
    Anecdotal evidence suggests that covered interest rate arbitrage was certainly common in the late nineteenth century, both in Europe (Lotz 1889; Raffalovich. 1.
     
  4. EconPapers: Covered Interest Rate Arbitrage in the Interwar Period ...
    Nov 5, 2012 ... By David A. Peel and Mark P. Taylor; Abstract: In the Tract on Monetary Reform, Keynes (1923) conjectured that deviations from covered ...
     
  5. What is covered interest rate arbitrage? - InvestorGuide.com
    covered interest rate arbitrage - definition of covered interest rate arbitrage from InvestorGuide.com: An approach to limiting foreign exchange risk by purchasing ...
     
  6. Covered Interest Rate Parity financial definition of Covered Interest ...
    See also: Purchasing power parity, Covered interest rate arbitrage. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the ...
     
  7. What Is Interest Rate Arbitrage?
    The most common type of interest rate arbitrage is called covered interest rate arbitrage, which means that exchange rate risk is hedged out with a forward ...
     
  8. Covered Interest Rate Arbitrage in the Inter-War Period and the ...
    WBS is research and knowledge-led; we are one of the largest schools of our kind, with over 200 academic faculty members, almost all of whom are active ...