HSBC: Time For "risk-seeking, Yield-Hunting Trading strategies"

Today’s generally low volatility currency market environment could be “positive for risk-seeking, yield-hunting trading strategies,” an HSBC report out Wednesday said. There is one trade staple, maligned in certain quarters, and one currency sector that could benefit from a new volatility regime.

Volatility regimes, like price persistence, are ever changing

While some in the managed futures CTA space take the cyclicality of market environments as a document-able fact, there are those who are just now embracing the concept. The technical market environment of volatility is known to trigger numerous systematic strategies and create opportunity for discretionary and relative value traders...