November 11, 2019

10 Reasons Why Companies Hedge Foreign Currency Risk

Posted by Glenn Suarez
How and why companies hedge foreign currency risk depends on factors such as the industry, risk management acumen and management team perspective. But most public corporations do hedge their FX risk for one reason or another.
Read More
August 28, 2019

Forecasting Balance Sheet Exposures

Posted by Sandra Koch
In order to mitigate foreign currency gains and losses, companies routinely hedge away currency risk associated with balance sheet exposures. Companies need to identify all monetary accounts on the balance sheet and aggregate the foreign amounts...
Read More
August 26, 2019

Gathering Balance Sheet Exposures

Posted by Sandra Koch
Balance Sheet Exposures  Balance sheet exposures are the drivers of the FX Gains and Losses that impact earnings every month. They are monetary accounts like cash, accounts receivable, accounts payable, inter-company balances and more that are...
Read More
August 19, 2019

Understanding Balance Sheet Exposures

Posted by Sandra Koch
A majority of corporations identify and hedge balance sheet exposures. In fact, they are the most commonly hedged exposures by far. In order to do so, one must understand why balance sheet exposures pose a risk in the first place and how to...
Read More
August 12, 2019

Types of Currency Exposures and Common Hedge Types for Each

Posted by Sandra Koch
Currency movements affect internationally operating companies in many different ways. For example, when a U.S.-based firm sells goods and services in a foreign currency, their USD cash results fluctuate in relation to that foreign currency. When...
Read More
July 08, 2019

Restoring Economic Integrity When Hedging Non-Economic Accounting Risk

Posted by Helen Kane
Motivational speaker Brian Tracy said: “Incorrect assumptions lie at the root of every failure. Have the courage to test your assumption”. Testing your assumptions is exactly what we plan to do.  
Read More
July 25, 2018

Argentina Breaches “Highly Inflationary” July 1, 2018*

Posted by Glenn Suarez
Time is running out. Economic conditions in Argentina have deteriorated, with interest rates exceeding 40%, the Argentine peso (ARS) depreciating more than 50% vs. the U.S. dollar (USD) in the last year, and inflation rates approaching 4% per...
Read More
March 19, 2018

The 3 Biggest Pitfalls of Hedge Programs

Posted by Glenn Suarez
A successful foreign exchange hedge program requires both a well-planned implementation and careful maintenance. Unclear objectives, poorly documented strategies, and bad data lead to confusion and unexpected results. Surprises happen. Fingers...
Read More
February 12, 2018

Net Investment Hedges to Protect Repatriated Earnings

Posted by Helen Kane
With the prospect of off-shore cash moving back to the US, and much of it currently denominated in EUR or other volatile foreign currencies, when should treasury departments be protecting the USD value of these soon-to-be repatriated amounts? ...
Read More
1 2 3 4