C8 Letter in the FT

Letter: Benefits of Direct Indexing are Clear to ESG Investors
BY JON WEBB

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Thoughts From The Divide: Hold On Tight

BY JON WEBB
“It’s obvious that there’s going to be stress and losses”. The comment is from Janet Yellen’s comments this week and comes from the discussion of the ongoing CRE dumpster fire. Stress and losses aside, the Treasury Secretary was unruffled, following up with the comment, “I hope and believe that this will not end up being a systemic risk to the banking system.” Yellen did admit that size matters. While “The exposure of the largest banks is quite low,… there may be smaller banks that are stressed by these developments” Read more →

C8 Hedge – Currency Compass – Manage Currency Balances with C8 Hedge – June 2025

BY JON WEBB
All corporates and asset managers hold cash balances, to cover upcoming outgoings and, in reserve, an excess balance, for example, in case of fund redemption.  A corporate or asset manager will build excess balances as they randomly accrue in various currency accounts, we propose managing these cash balances in a more systematic way. As regular readers will know, C8 Hedge is designed to add value to the FX hedging process by modelling key drivers of FX markets: fundamental, trend, carry and value.  Importantly, these key drivers can be just as easily used to optimise cash balances. Hold excess cash in currencies that are likely to appreciate on a total return basis (combining spot movement and interest carry). Read more →

C8 Currency Compass – October 2024

BY JON WEBB
A strong start from Currency Compass last month, where we called for a 50bp Fed rate cut camp but noting our currency models point to EURUSD and GBPUSD weakness, so any bounce is a good opportunity to add EUR and GBP hedges.  Indeed it was, with EURUSD hitting 1.12 and GBPUSD 1.34 before falling back.  Stronger US data, in particular the employment report, helped cement this view, the chart below illustrates  how recent US data has pushed up the Atlanta Fed Q3 GDPNow forecast from 2% to above 3%. Read more →
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