NeuGroup Insights seeks Amanda Breslin's thoughts on hedging cyclical currencies
The NeuGroup's online community provides their members a forum to pose questions and give answers. "Talking Shop" shares valuable insights from these exchanges, anonymously. Amanda Breslin provided her insight on hedging cyclical currencies.
Amanda Breslin in NeuGroup
"Chatham’s clients design their balance sheet hedging programs to reduce volatility 'with an eye towards operational simplicity, setting hedging triggers and ratios that can be broadly applied and consistently executed, rather than isolating specific currencies.'”
NeuGroup Insights reached out to Amanda Breslin, Chatham Financial’s managing director of corporate treasury advisory, for additional insight on how Chatham’s clients handle the issue.
- In accord with Ms. Friberg’s point, she said that most of Chatham’s clients design their balance sheet hedging programs to reduce volatility “with an eye towards operational simplicity, setting hedging triggers and ratios that can be broadly applied and consistently executed, rather than isolating specific currencies.”
- Ms. Breslin added that “exceptions are most often seen due to material transaction costs related to liquidity, companies that have a strong bias towards using forward points as a proxy for hedging costs and/or currencies that represent a relatively high or low proportion of the aggregate risk in the portfolio.”
Our expertise for corporatesChatham provides the knowledge and expertise needed to manage the financial risk associated with interest rate, commodity, and foreign exchange volatility. We develop and implement hedging strategies for hundreds of public companies annually, based on deep and productive banking relationships, giving us market data and insights to enable you to secure the best pricing and terms. Our goal is to empower you to strengthen your financial position and support your company’s financial objectives.
With expertise across hedge accounting, regulatory compliance, valuations, and hedging transactions, we can support all aspects of financial risk management. Our ChathamDirect platform provides convenient workflow, robust analytics, and comprehensive accounting methodologies, supported by our unmatched commitment to client service. This unique combination of strategy, operations, and technology will empower you to run a best-in-class hedging program.
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