If I buy a bond at 10% yield in currency X and want to hedge it and the implied FX yield is 12% for some reason, does this mean that I will lose 2% (10 - 12%)
I know FX implied yields are the yields that enforce covered interest rate parity.
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Sign up to join this communityIf I buy a bond at 10% yield in currency X and want to hedge it and the implied FX yield is 12% for some reason, does this mean that I will lose 2% (10 - 12%)
I know FX implied yields are the yields that enforce covered interest rate parity.