equity hedge update ..., page-6

I wouldnt be surprised if we get some further equity hedges closed out

The hedges that were closed yesterday were done when the AUD was around 92.5. The AUD is creeping up to that mark now.

The previous hedges were closed out when the AUD was at 93

Interest rate differentials had decreased between the two closeouts. Im fairly certain that the market is not factoring in a rate rise in December. Hence, the close out with the lower AUD yesterday.

Im not sure though if interest differentials changed after the revision downwards of 3rd quarter GDP last night.

If not, Id expect more close outs if the AUD can push back up above 93c

Cheers

P.S This is all good news. This is having a very favourable effect on NTA.