COVID | Equities | FX | Global
Our portfolio was tilted defensive before the Omicron news, so it was well positioned and gained 1% on the week. I’ll be reviewing which trades to exit given large gains. Here are the details:
1. China slowdown: long China rates (10y futures, FX unhedged), short KOSPI. Both trades gained with sharp drops in Kospi and China rates rallying.
o Premise: China property weakness, new regulations on private sector, continued lockdowns around COVID and poor energy management all contribute to growth weakness.
Our portfolio was tilted defensive before the Omicron news, so it was well positioned and gained 1% on the week. I’ll be reviewing which trades to exit given large gains. Here are the details:
1. China slowdown: long China rates (10y futures, FX unhedged), short KOSPI. Both trades gained with sharp drops in Kospi and China rates rallying.
o Premise: China property weakness, new regulations on private sector, continued lockdowns around COVID and poor energy management all contribute to growth weakness.
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