(Wall Street Journal) A government proposal meant to limit the use of risky derivatives could hamper an increasingly popular breed of mutual funds that hedge against currency risks. Individual investors in recent years have flocked to mutual funds and exchange-traded funds that try to minimize the impact of currency moves on their investments in foreign assets.
Now, rules being considered by the Securities and Exchange Commission to limit mutual funds’ use of derivatives broadly could make it harder, or more expensive, for the currency-hedging funds to hedge their risk…
