Snapshots of The End of Crisis Insurance? Reassessing the US Dollar and the Case for Currency Hedging

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that the dollar’s historical crisis-insurance role can materially lower optimal hedge ratios for non-US investors, but if that role weakens, risk-minimizing hedge ratios can shift sharply toward full hedging, especially for investors with risk-sensitive home currencies.