LTRO has jump-started currency investors out of risk aversion, says Pimco

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The two longer-term refinancing operations (LTROs) announced by the European Central Bank (ECB) last year – the first of which took place in December, and the second of which will take place next week – have driven a shift in investor behaviour away from risk aversion and safe bets towards high-yielding emerging market (EM) currencies, according to Thomas Kressin, European head of foreign exchange at Pimco in Munich.

"The major theme in the second half of 2011 was risk aversion and the flight to

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