MSIM Revamps Renminbi Options Strategy with Targeted Strikes

US Manager Rebuilds USD/CNH Call Position with Tighter Strikes

Morgan Stanley Investment Management’s (MSIM) long‑standing renminbi foreign‑exchange options strategy yielded a single payout since 2020, costing nearly $650 million in premium, according to FX Markets research. The fund is now revising its approach, increasing notionals and targeting strikes nearer the current spot level with reduced premiums.

Regulatory filings indicate that the US‑based fund manager holds USD/CNH call options across eight of its proprietary funds and three sub‑advised vehicles.

Source link