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@ugottabelieve Yes thats how I understand it too, for each bond they buy not denominated in EUR they will open a hedge position, so they get profits from their hedge if the EUR increases in value compared to the bonds currency. For bonds it makes more sense than for stocks, because its inherent...

@ugottabelieve Assume you have an US company operating in the US mostly appealing to US investors trading in US dollars. Now you convert your EUR to USD tobuy this company. unfortunately after that EUR/USD doubles. since the company still trades for the same USD value your value in EUR would...