Corporate Giants Are the New Hedge Funds of the Global FX Market
- Over half of banks’ currency revenue now comes from companies
- Citi revamps FX trading business under corporate-sales veteran
Apple Inc. is sitting on $135 billion in foreign exchange derivatives.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
For signs of where the action is in the $7.5 trillion-a-day currency trading market, look no further than Apple Inc.’s balance sheet.
The technology giant is sitting on $135 billion in foreign exchange derivatives, some of which are used to hedge against currency fluctuations across its many markets. Alphabet Inc. has about another $60 billion of these contracts. In comparison, the world’s currency-focused hedge funds manage just $78 billion – combined.