“The low share of unhedged foreign currency exposure as a portion of their capital and the modest size of their securities books should offer some resilience,” Kwok writes in a Nov 6 note.
The big Asean banks’ “solid” foreign exchange (forex) and interest rate management may shield their bonds from a possible volatility from a win by US President Donald Trump, says Bloomberg Intelligence’s credit research analyst Rena Kwok. Trump won this year’s presidential elections, becoming the US’s 47th president. This will also be Trump’s second term in the White House.
Trump’s re-election is believed to see renewed inflation, stickier interest rates and a stronger US dollar based on the policies he has proposed so far.
