Bank of America's macro traders are limiting their risk exposure as they approach the end of the year after experiencing intense turmoil in some of the world's hottest deals. Carlos Fernandez-Aller, co-head of global fixed income, foreign exchange and commodity macro trading at Bank of America, said that fluctuations in European interest rates this year have caused particular headaches for macro funds. Despite the overall better performance of investors in emerging markets, after Brazilian President Lula's unexpected victory, there was a sharp sell-off in the Brazilian market, which also impacted the emerging market sector and highlighted how easy it was to reverse the gains. In an interview at Bank of America's New York office, Fernandez-Aller said, “The market is very fragile, and any minor accident could lead to the continuation of the wave of liquidation we have seen before. We are currently taking relatively little risk.”

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