FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Lloyd’s of London Chief Executive Officer Inga Beale said Donald Trump’s presidency and the U.K.’s planned exit from the European Union are creating opportunities to sell insurance guarding commercial clients against disruptions in global commerce.
"I wouldn’t be surprised if we start seeing much more political-risk insurance being bought all over the place," Beale said in an interview Tuesday in Miami. "Because we’re such specialist insurance, and we provide that type of insurance, you could say that could be seen as an opportunity”, extended Beale.
The coverage often involves smaller trading partners, rather than developed-market powers, but shifts in the U.S. and U.K. could redraw the political-risk insurance map, according to Beale. She said Trump’s victory in November "is leading to quite a bit of uncertainty," and cited the possibility of a U.S. border tax designed to encourage manufacturing in the U.S.
Man-made hazards for businesses are on the rise, marked by an increase in global populism, the spread of terrorism and the threat of cyber-crime. Lloyd’s is the world’s oldest insurance market and is used by businesses seeking to guard against large or complicated risks. Setting prices on these policies can be difficult for insurers, however, as they don’t have the benefit of the decades of data available on weather-related threats such as hurricanes.
Whereas JPM’s hedge fund index also indicates a rise in risk sentiments. Many investors and we are surprised by how stable markets have become and how much implied volatility has fallen. Fundamentally, this is supported by the lack of economy negative actions by the new Trump Administration and a world economy performing in line with the forecast.
Retail investors have been rather cautious this year by buying more bond than equity funds and by continuing to buy VIX ETFs.
From the above chart, we run you through our analysis on the currency HFs, these streams of trades have also increased long dollar exposures even as the DXY has declined through January. By contrast, the betas for CTAs and Macro HFs ex-CTAs have turned negative.
