Time for a rethink
A decline in the value of USD and increased implied volatility in the FX markets has left corporates battling to keep their budget rates afloat, while mitigating sizeable mark-to-market losses on currency hedges.
The dilemma has mainly hit US-based companies with foreign currency liabilities and non-US corporates with dollar revenues, and has led to an increased use of derivatives among firms. While some have been able to do this easily, for others it has been more difficult.
In the past few
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