Sterling potential for currency mortgages
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3D Currency Management, which runs multi-currency mortgages, says it is looking at opportunities to profit from “undervalued” sterling to help borrowers reduce their outstanding debts.
The firm manages the currency for borrowers’ mortgages, monitoring positions on a round-the-clock basis.
Chief operating officer Neil Staines says: “The aim is to reduce the value of outstanding debt by placing that debt into currencies which we believe will depreciate against the value of sterling.
“I think there is a lot of opportunity to extract value from sterling in currency mortgages. I think there are going to be a lot of potential short-term opportunities. But I think from a fundamental standpoint it is one of the most undervalued currencies at the moment and as we move out of the period of uncertainty for the UK following the election, the strength and resil-ience of the UK economy has been fairly impressive and on
a relative value basis, there is very strong value against other currencies.”
At the time of writing, the mortgages managed by 3DCM are currently denominated 50 per cent in euros, 30 per cent in sterling and 20 per cent in yen.
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