Brad Setser on the Big Surge in the Taiwanese Dollar
There are several markets that have really settled down since the tumult of early April. But strange, unusual things are still popping up, particularly in the currency space. Over the last few days, we've seen a huge surge in the Taiwan dollar. This is important, in part, because Taiwanese life insurance companies are major buyers of US dollar assets, such as corporate bonds. Suddenly, they're looking at a major hit to the value of these holdings, with losses that are only partially hedged. So why
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