Western Asset warns currency rebalancing to take years

Legg Mason's global fixed income subsidiary Western Asset Management has reduced its exposure to curr...

Legg Mason's global fixed income subsidiary Western Asset Management has reduced its exposure to currency strategies after warning the foreign exchange market will take years to rebalance. Western Asset's senior product specialist Mike Zelouf says short-term technical trading has created extreme volatility in exchange markets, leading to a number of currency misalignments. Zelouf says currency volatility can have overwhelming effect on fixed-income managers and he urges investors wait before making any significant foreign exchange plays. Sterling has been one of the hardest hit currenci...