A hedge program is most effective when it aligns with the way your company evaluates financial performance. In this blog, we provide an overview of three different hedge strategy types that companies often turn to.
May
13,
2022
Posted by
Hedge Trackers
Is your balance sheet hedge program doing its job? Sometimes, balance sheet hedging has hidden weaknesses and nuances that, when not periodically reviewed, can cause even more risk. Here are five questions you can ask to ensure your program is...
November
17,
2021
Posted by
Helen Kane
Today, I'm going to be talking about objective setting. And when we're talking about FX policies, a lot of times – almost universally, I guess – I see the objective in the policies to mitigate FX risk, and it's not really clear what it is...
February
16,
2021
Posted by
Karen Gubler
As companies implement and run foreign currency (FX) risk management programs, they need to be aware of some common mistakes. Not all treasuries will encounter every mistake, but they are sure to encounter at least one of these—if not now, then in...
September
01,
2020
Posted by
Jeff Goggins
Once a company establishes a balance sheet program, it likely runs on auto-pilot from then on. Exposures are gathered, forecasted, netted, hedged and adjusted inter-month, and the results of the program are reported — but rarely is there a “review”...
July
02,
2020
Posted by
Glenn Suarez
To implement a successful hedge program, it’s important that all parties involved know exactly what the hedge program will provide. This prevents disappointment and level sets expectations with management. Here are some common benefits FX hedge...
June
23,
2020
Posted by
Glenn Suarez
Using a Net Investment hedge strategy to boost income has been around for decades, but the ultra-low interest rate environment in Europe combined with the new rules under ASU 2017-12 has renewed curiosity in this approach. By utilizing a...
June
17,
2020
Posted by
Lorraine Popylisen
A common misconception is that if you have a foreign currency transaction, you can simply hedge it and apply special hedge accounting. However, the fact is that sometimes an exposure can be hedged, but it will not qualify for special hedge...
March
20,
2020
Posted by
Helen Kane
Under stable market conditions, most corporate foreign currency hedgers have a “set it and forget it” hedge strategy. Whether it’s cash flow or net investment hedging, once the hedges are in place, the majority of companies hold onto their...