Foreign Currency Hedging

Foreign Currency Hedging, fx hedging, currency hedging

Managing the foreign currency rate changes that can impact returns
Investors who purchase foreign assets run the risk that movement in local currency rates can reduce the underlying value of their expected/projected return. Many investors seeking to reduce such risks are wary of making large upfront cash outlays as well as potential breakage


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Deal Contingent Hedging

PRIVATE EQUITY, hedging, Deal contingent hedging

Mitigating risk and avoiding dead deal costs
When a private equity investor agrees to purchase a company in a foreign currency rather than the currency in which the debt or equity is funded (e.g. investing equity from a US Dollar denominated fund in a JPY asset or raising debt in USD for a CAD investment),


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Foreign Currency Hedging

currency hedge, Foreign Currency Hedging, fx hedging strategies for corporates

Foreign Currency Hedging for Corporates
As companies expand globally, currency risk can significantly impact both operational results and financial statements. This can stem from mismatching revenue and expense currencies, managing various operational currencies under the same corporate umbrella, or even short-term liquidity needs in particular currencies.
Oftentimes, companies may seek out economic exposure to


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The Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) goes into effect January 1, 2013, and may have an adverse tax impact on certain payments made in derivative transactions.


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