Thursday, February 24, 2011

FX contract closed out at a loss

Last month's HKD/NZD FX contract was closed out at a loss yesterday.

The NZD was sold off after the tragic earthquake, resulting in a current fixing of HK$5.8005 compared to my strike of HK$5.954. The net loss after accounting for the premium I received is 2.03% of the amount invested. I am still holding the NZD and need to decide what to do with them. I can consider some NZD denominated corporate bonds with yields of 6-7% which would go some way towards reducing the volatility associated with my portfolio.

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