Traders report significant month-end flows linked to asset managers rebalancing portfolios.
The thing to remember about rebalancing is that managers sell winners (which have become a larger percentage of their overall portfolio) and buy losers (which have become under-represented in the portfolio.
That helps explain why GBP is in demand today. UK equities have been among the worst performing markets so far this year. …
It doesn’t always seem logical, but it is transitory in nature, thank goodness….
