In Brief: State St. Says Volatility to Continue Overseas

State Street Corp. expects continued volatility on international exchanges.

"You can't have this kind of growth without increased volatility," said Marsh Carter, chairman and chief executive of the Boston-based custodial bank and asset management company.

"The real question," he added, "is what is going to be the range of that volatility."

Mr. Carter noted that a decade ago seven or eight countries were considered to be emerging markets, but the number has grown to about 38. Moreover, he said, daily foreign exchange trading has hit around $2 trillion, and investment by U.S. pension funds outside the United States is expected to reach $2 trillion by 2000, up from $350 billion in 1990.

State Street officials added that market volatility would bring more opportunities as well as more risks.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER