We study whether it is possible to find optimal hedge ratios for a foreign currency bond portfolio to lower significantly the risk and increase the risk adjusted return of a portfolio. The analysis is conducted from the perspective of euro area based investors to whom short-selling restrictions...

This paper discusses how the global financial crisis has affected the formation of exchange rates and interest rates in three major Central and Eastern European countries: Poland, the Czech Republic and Hungary. Two main channels of the transmission of the crisis are considered: the exchange...