Time is right for early barrier forwards
Background: UK corporates such as retailers with dollar-purchasing requirements typically hedge their currency exposure using a stepped profile. Such companies assess their currency requirements about a year in advance, then hedge a quarter at a time, topping up each quarter until they are fully hedged with about three months to go before the cashflow materialises.
While this allows the company to broadly hedge according to a steady average during the period, it comes undone when the market
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