The WSJ quotes Merk's analysis of how currency funds may be employed to manage interest and credit risk in international fixed income portfolios.
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This week, Merk Investments released a research paper illustrating the growing use of currency funds to reduce exposure to interest rate and credit risk. However, the firm noted that one of the best ways to accomplish that goal was to invest in fixed-income funds "that have a commitment to the short-end of the yield curve, and to high credit quality securities..."