TCX
31.3.2021 06:02:09 CEST | Business Wire | Press release
The Currency Exchange Fund (TCX ) launches the first-ever frontier bond currency index (TCX FI ). The informative index tracks the performance of frontier currency-linked, investment-grade Eurobonds, issued by (multilateral) development finance institutions such as the African Development Bank, EBRD, FMO, and the IFC. The TCX FI currently covers 77 bonds in 20 frontier currencies where TCX has acted as hedging counterparty to the issuer. During a 3-year back-testing, the index outperformed a comparable EM-currencies portfolio in risk-return and diversification terms.
The uniqueness of the index lies in its underlying exposure. It includes frontier currencies such as the Uzbekistani Som, Honduran Lempira, Tanzanian Shilling, and Vietnamese Dong, which are not covered by existing indices. TCX calculates bond price information from the valuation of the bond’s hedges outstanding in its books.
Frontier debt is gaining traction among investors looking for alpha generation and portfolio diversification. The asset class remains underinvested due to high illiquidity, perceived risk, and accessibility concerns.
TCX has been set up specifically to provide currency risk protection to hard currency borrowers in countries where the market fails to deliver solutions.
The proceeds of the Frontier currency-linked Eurobonds fund institutions whose mission is to create impact in developing countries whilst applying the highest ESG criteria in the industry. Settled in euros or dollars, the bonds provide an accessible road to frontier currency exposure with minimal credit risk and no transfer and convertibility risk. The development of the index was made possible by the German Ministry of Economic Cooperation and Development, BMZ.
Ruurd Brouwer, TCX ’s CEO states:
“Frontier currency bonds offer a unique combination of investment-grade credit risk with the market risk and return of frontier market currencies. Through TCX, the bonds redistribute currency risk from enterprises and financial institutions in frontier markets that cannot bear it, to asset managers and pension funds in the West that seek the additional return that comes with the risk. The index is an important step in generating visibility and transparency in this high impact asset class, showing that the real risk-return profile is better than the perceived one”.
Background information
TCX is an International Financial Institution that offers long-term currency protection in 100+ financial markets where such products are not available or poorly accessible. The Fund started operations in 2007 and has since then provided hedging instruments for USD 8.5 billion of total volume, spread over 3500+ transactions. The Fund has exposure for more than USD 5 billion in 60 frontier and emerging market currencies. By partially selling this exposure to private investors, TCX creates markets and gives these countries access to the international capital markets.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005005/en/
Link:
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Adtran extends 400G to the edge with new Terabit routing solution2.4.2026 14:00:00 CEST | Press release
News summary: Operators face rising edge capacity demands as 100G becomes standard across access, aggregation and mobile backhaul Adtran’s new Terabit-class edge routers deliver high-capacity in compact, cabinet-ready platforms Open disaggregated architecture integrates routing, optics and software-driven management for simplicity, flexibility and control Adtran today extended its edge routing portfolio with new Terabit-class edge routers, featuring 400Gbit/s interfaces. These new devices give operators a practical, cost-effective way to scale capacity at the network edge without adding space, power or operational burden. Supported by a unified software foundation that simplifies deployment and operations across the portfolio, the solutions provide a consistent, future-ready environment for edge growth. With 100Gbit/s interfaces now widely deployed across fiber access, aggregation and mobile backhaul, operators need higher-capacity edge options that reduce cost, complexity and inventor
Visa Defines the Next Era of Commerce: When AI Becomes the Customer2.4.2026 14:00:00 CEST | Press release
New Visa research reveals more than half of business leaders surveyed are open to AI-to-AI negotiation, but consumers say trust and override capability are non-negotiable A majority of business leaders are preparing for a world where artificial intelligence doesn’t just assist commerce, it participates in it. New research from Visa (NYSE:V) underscores how quickly that shift is gaining momentum. The Visa Business-to-AI (B2AI) Report, conducted in conjunction with Morning Consult, highlights how AI is already influencing demand. Nearly 40% of Americans have made a purchase they normally would not have considered as a result of using an AI agent or tool. This is an early indication that intelligent systems are beginning to shape how people discover and decide what to buy. The new report also reveals that 53% of U.S. businesses in the survey would allow AI agents to negotiate prices or terms directly with other AI agents on their behalf, signaling that AI-to-AI commerce is poised to scale
Traxys Group Completes Acquisition of Carbomax AB Through the Purchase of 100% of Comax22.4.2026 12:01:00 CEST | Press release
Traxys S.à.r.l., a global trader and merchant in the metals and natural resources sectors, is pleased to announce that the previously announced acquisition of Comax2 AB - the holding company of Carbomax AB - from Investment Aktiebolaget Spiltan and the other shareholders of Comax2 AB has successfully closed. Traxys Group has now acquired 100% of the interests in Comax2 AB, making Carbomax AB a wholly owned subsidiary of Traxys Group. All required Swedish regulatory clearances including foreign direct investment and antitrust approvals have been obtained allowing the parties to finalize the transaction. Carbomax AB is a leading Swedish trading house and industrial operator specializing in ferroalloys, carbon products and briquettes. Through this acquisition, Traxys strengthens its presence in the Scandinavian market and reinforces its commitment to advancing sustainable steel production in the region. The combination of Traxys and Carbomax creates significant commercial, operational and
Reply Signs Strategic Collaboration Agreement with AWS to Accelerate AI-Driven Cloud Transformation2.4.2026 10:00:00 CEST | Press release
Reply [EXM, STAR: REY] announced today that it has signed a strategic collaboration agreement (SCA) with Amazon Web Services (AWS) to accelerate the adoption of cloud and artificial intelligence solutions across key international markets. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260402597802/en/ This strategic collaboration agreement further reinforces Reply’s commitment to enable organizations across industries to harness the full potential of cloud and artificial intelligence technologies. At the core of the SCA is a strong focus on Artificial Intelligence and Generative AI. Leveraging the deep expertise of its specialized companies - Comsysto Reply, Data Reply, Sense Reply, and Storm Reply - Reply supports organizations in designing and deploying enterprise-grade GenAI solutions, including agentic AI systems for autonomous workflows, domain-specialized models for vertical industries, and governance frameworks aligne
Bending Spoons renews tech scholarship for women with €100,000 commitment2.4.2026 09:11:00 CEST | Press release
Bending Spoons today opened applications for the 2026 edition of its Women in Computer Science Scholarship. The program offers twenty scholarships, each worth €5,000, to university students pursuing technology degrees across Europe and the United Kingdom. This year’s recipients will also be invited to a two-day networking event in Milan in October, fully covered by the company. The initiative is part of a broader set of programs Bending Spoons runs to recognize and support the next generation of technology talent, including merit-based scholarships, networking events, and student competitions. "The students of computer science today will define what the field looks like in the years ahead," said Eva Milenkovska, talent manager at Bending Spoons and lead of the scholarship initiative. "This scholarship is about recognizing the women who are pushing themselves to excel and to help shape the future of the industry." This is the fourth time Bending Spoons has offered this specific scholars
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom