Bloomberg News

Merrill Lynch Wealth Management Hedging Against Euro Declines

September 12, 2011

Sept. 12 (Bloomberg) -- Bank of America Corp.’s Merrill Lynch Wealth Management unit in Europe, the Middle East and Africa hedged its exposure to the euro in portfolios because of a rising probability that the currency will weaken.

“We continue to remain cautious on the euro, and have taken the decision to hedge our currency exposure,” Bill O’Neill, chief investment officer for EMEA, wrote today in an e- mailed report. “A likely rate cut by the European Central Bank on top of increased ECB bond purchasing and ongoing political uncertainty, especially the balance between core and periphery, remain headwinds for the currency.”

The euro was little changed at $1.3668 at 2:53 p.m. in London.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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