RBS finds FX calm with new currency protection system

Royal Bank of Scotland (RBS) has created a new hedging technology to cope with foreign exchange volatility, which spiked earlier this year. The structure, which goes by the name of Quampo, blends the features of quanto technology, a currency hedged investment, with compo, where FX exposure is not hedged. Quantos are typically used to convert investments with foreign market exposure back into payout currencies at a fixed rate, but became too expensive after forex volatility went up. “Buy