Foreign Currency Hedging

Chatham is the world’s largest independent provider of foreign currency risk advisory services. After assessing a client’s risks, objectives and constraints, we help identify the various tools that address the risks – whether foreign currency forward contracts, options, collars, cross currency swaps or a wide range of other risk management solutions.

“Whether helping Carlyle think about our currency exposures at the fund level or working with one of our portfolio company CFO’s to hedge interest rate risk, Chatham has been an invaluable member of the Carlyle team.”

Clients partner with us to address a wide range of risks. Examples include the following:

• Fortune 500 company repatriating foreign profits
• Emerging markets investor hedging interest rate and currency risk by funding investment with US debt, hedged via a cross currency swap to replicate locally denominated debt
• Manufacturer hedging changes in payments to foreign suppliers
• Hotel owner hedging equity investment in foreign property portfolio
• Private equity firm hedging foreign currency exposure in large cross border investment

Once a hedging strategy has been selected, Chatham will work to arrange credit, negotiate documentation, and efficiently execute each transaction – whether through competitive auction or negotiation.

Additionally, Chatham brings a vast array of resources to bear in ensuring that your company executes the right derivative, at the right price, on fair terms. Such resources may include deep analytic capabilities to help assess your company’s risk profile before and after a hedge is put in place. Further, clients rely on Chatham’s web-based portfolio management platform to track their derivatives portfolio, receive valuations and journal entries, reconcile bank payment notices, perform shock analyses, retrieve transaction documents, and much more.

Chatham seeks to be an extension of your finance team – a partner who solely represents your interests as you navigate complex capital markets issues.