Q: The idea of reducing debt by currency management is appealing. How does it work?
A: Think of the two sides of a balance sheet. In an environment of low interest rates, benign economic conditions and generally rising prices, investors focus on assets and go to great lengths to identify talented asset managers. However, in an environment of rising interest rates, declining economic output and stagnating or even falling valuations, liabilities assume greater relevance.
At ECU, we believe a uni