Keep it Simple: The Business Rewards of Employing an FX Spot and Forward Strategy

Keep it Simple: The Business Rewards of Employing an FX Spot and Forward Strategy

SMEs, the benefits of simplified FX products, such as forward and options contracts, are clear. Moreover, they are straightforward to understand and use. However, the vast majority of SMEs don’t hedge at all, an extraordinary fact given the often grim consequences for corporate profit margins. Like when Apple lost $3.73 billion due to currency fluctuations…

Gold Prices Rise in 2019 … Rocks Key Global Currencies and Vice Versa

Gold Prices Rise in 2019 … Rocks Key Global Currencies and Vice Versa

Gold prices are on the way up as more and more traders turn bearish and take money out of bullish equity and currency trade positions. 

Make no mistake, the uneasy relationship between gold prices foreign currency fluctuations is both real and potentially damaging in a global economic environment that edges closer to the precipice in the last quarter of 2019 – and heading into the new year.

Deal or No Deal? Three Things to Know About Where Brexit Stands These Days.

Deal or No Deal? Three Things to Know About Where Brexit Stands These Days.

The U.K. parliament is back in session and all eyes are on the British Lion as October 31 looms.  

That’s the date new prime minister Boris Johnson promises to take the U.K. out of the European Union, deal or no deal. 

What Countries Are Blacklisted and What Are the Consequences of Working with Them?

What Countries Are Blacklisted and What Are the Consequences of Working with Them?

There are several countries around the world with which companies are prohibited from carrying out any sort of financial transaction. The reason for these bans is that the countries are blacklisted under authority of the Financial Action Task Force (FATF), an intergovernmental body that the G7 group of nations founded in 1989.

The Best U.S. Cities for Small Companies

The Best U.S. Cities for Small Companies

According to the U.S. Small Business Administration1 there were 30.7 million small businesses operating in the U.S. in 2018, employing 59.9 million people, or 47.3% of all U.S. employees, the SBA notes.

While these small businesses are spread across every state and city in the country, some cities stand out as being more welcoming for small companies than others, especially entrepreneurial start-ups just opening their doors.

Tackling Balance Sheet FX

Tackling Balance Sheet FX

FX risk management is filled with nuances affecting how some exposures are commonly hedged versus others, but there is one crucial differentiator dividing two very different approaches – that of forecast versus balance sheet exposures. This is the first delineation to be made when we characterize FX exposures.

Is There Such a Thing as “Too Expensive” to Hedge?

Is There Such a Thing as “Too Expensive” to Hedge?

It is said that the two happiest days in boat owners’ lives are the day they buy the boat, and the day they sell it.  If you own a boat, you understand this ism based on the money and effort it costs to keep a boat. Executives feel the same fervor when their operations expand into fast growing economies with large populations…

Identifying FX Exposures: A Critical Step in Developing an FX Risk Strategy

Identifying FX Exposures: A Critical Step in Developing an FX Risk Strategy

In an earlier article, we helped you build a foundation for your FX risk management strategy with a “brick and mortar” analogy… the process of collecting exposure data and executing hedges we described as “bricks,” and risk measurement and analysis using VAR and confidence intervals were described as “mortar.” This article will discuss a crucial step in your foundation-building process: gathering accurateFX exposure data.

How to Convince your CXO to Hedge Forex

How to Convince your CXO to Hedge Forex

Sir Arthur Conan Doyle said (via Sherlock Holmes), “When you eliminate the impossible, whatever remains, no matter how improbable, must be the truth.” An unexplained, or otherwise anticipated “no” to the question of hedging FX is like a mystery. The way to decipher why executives won’t hedge, and convince them to act, is to remove the possible arguments against hedging, one by one.

Why Not to Not Hedge Your FX Risk

Why Not to Not Hedge Your FX Risk

If only executives spoke as parents do to their children: Mom, can I…? No. Why not? Because you did not eat your vegetables. Or, the infamous, because I said no. At least you’d know there is or isn’t a chance to change their view and what action is required…

FX Budget Rates: Confident Becomes You

FX Budget Rates: Confident Becomes You

Treasurers and risk managers who’ve been around the block recognize that fluctuating market rates rapidly affect their ability to capture that rate.

This article focuses on how you can set budget rates and align your FX strategy to increase confidence that your company will convert its forecast exposures at the budgeted conversion rate.

A Dose of Reality: Rethinking FX Budget Rates

A Dose of Reality: Rethinking FX Budget Rates

We all daydream of winning the Publishers Clearing House Sweepstakes. A cushion of $25,000 per month would go a long way to pay bills, save money for rainy days, and build a retirement nest egg. Alas, the probability of such a stroke of luck is miniscule. 

Put Confidence in Your FX Strategy

Put Confidence in Your FX Strategy

Remember the story of the three little pigs? If you’ve ever leaned against a brick wall, you know the unsung hero of the story was mortar – the cement that connects every brick so the wall stays intact, and serves its purpose.

Our title, Put Confidence in Your FX Strategy, asserts that the way to build a strategy is to include confidence among the materials used, like the mortar in a brick house.

Measuring FX Risk: Crises with Confidence

Measuring FX Risk: Crises with Confidence

Corporate treasurers do more than ever before to identify and mitigate risk and to position their companies to weather market crises with confidence. According to Deloitte, 85% of companies are measuring their sensitivity to market risk, but a much smaller portion regularly assess the probability of their risk.