This time, we were a lot more concerned with the exchange rate than we usually were. Generally, changes in the exchange rate are healthy. Eh kung short ang foreign exchange rate, eh gusto mong tumaas ang presyo para mag-ingat ang tao sa paggamit ng foreign exchange.
ABX prices, in principle, ought to reflect the up-to-the-minute credit losses expected by market participants as well as changes in the price of liquidity and market risk. Indeed, I was worried that ABX pricing might overestimate credit losses because it carries premiums for these other risks, and trading may be light.