Investment
Protecting against losses while making gains
Given the rapid, one-way move in the Canadian dollar (CAD), many hedgers who are short CAD are looking for innovative hedging ideas. John McAuliffe, manager, US FX options sales at the Bank of Montreal in Chicago, suggests some options
UBS holds onto pole position
LONDON – UBS is the top-rated bank in FX, according to the 1400 voters in FX Week's 10th annual survey of the market.
New retail laws spark alarm in Japan
TOKYO – A debate is raging in Tokyo over the impact new retail FX trading laws will have on the developing market.
Funds repatriation bill set to pass
NEW YORK – A bill offering US companies the chance to repatriate overseas earnings at a hugely discounted tax rate is set to be signed into law in the next week – much sooner than previous estimates, said analysts.
Prime brokerage best for individual investors
Individuals who want to trade FX may find a prime broker will promote confidentiality, cut out settlement difficulties and help resolve credit issues, says Peter Wakefield, MD of research and product development at Record Currency Management in the UK
Hedging Chinese renminbi revaluation
To boost returns on the event of Chinese renminbi revaluation, trading on the recently launched Bloomberg-JPMorgan Asian Currency Index (ADXY) is the best solution, says Erik Herzfeld, head of regional options trading at JP Morgan in Singapore, and…
SIBOS 2004
CLS rules the roost at Sibos
Yield enhancement for European investors
Polish investors anticipating zloty strength over the coming year should consider a 'zloty bull note' to provide higher returns than a one-year deposit, says Andy Kaufmann, head of FX structured products for Europe, the Middle East and Africa at Merrill…
Making the most of upcoming volatility
For the currency overlay manager looking to take advantage of a burst of market volatility at the start of the fourth quarter, Simon Derrick, head of Bank of New York's currency strategy team, describes a simple, low-cost way for them to express their…
Protecting speculative trade management positions
Some clients will have specific views on the future movements of currencies to which they have exposure. UBS's global FX solutions group shows how barrier strategies can be used to limit risk on these positions
Rankings reveal diversifying inter-dealer market
The inter-dealer market for foreign exchange is shrinking, as an increasing number of mid-tier players retreat from market-making to become clients of the top firms. The banks that remain are working hard to consolidate their positions as liquidity…
Pension funds scramble for FX management
LONDON – UK pension funds' demand for foreign exchange management has gone through the roof over the past year, as trustees and managers seek to limit risk and improve returns.
Eliminating foreign exchange translation risk
FX translation can mis-represent a company's profit growth on its balance sheet. Cliff Bayne, senior exotics dealer, and Terence Yiu, chief dealer, at ABN Amro in Singapore, explain how to hedge the translation risk at minimal cost
Hedging when the market moves against you
A nine month sliding forward structure can help your company achieve attractive FX hedging rates when the market has moved substantially beyond your budget rates, says Adam Gilmour, head of FX options sales in Citigroup's emerging markets sales and…
Oil price hits Asian currencies
HONG KONG – Surging oil prices have put pressure on Asian currencies, but the impact has been magnified by other factors influencing the region, according to analysts.
Forward structure for an exotics-shy corporate
High price volatility is making EUR/AUD exposure challenging to manage. Sara Sullivan, ANZ’s senior FX options sales manager in London, proposes a solution for a European multinational that receives payments from an Australian subsidiary
AIB repays e 26m for overcharging
Customers to be repaid as regulator's report details AIB's "failures" DUBLIN – Allied Irish Banks (AIB) said it is repaying e 26 million ($32 million) it overcharged clients on three million FX deals, after a regulator slammed the bank in a report last…
Refco buys stake in ACM
GENEVA – US brokerage Refco Group bought a majority stake in online FX trading firm AC Markets (ACM) for an undisclosed sum last week. The cash purchase was completed on June 29.
How to make yen gains amid intervention fears
A currency overlay manager may wish to take advantage of fresh yen strength without being exposed to the impact of renewed intervention. Simon Derrick, head of Bank of New York's currency strategy team, describes a simple, low-cost way to express this…
Boosting dollar returns during euro strength
To boost returns on a US dollar deposit in a bullish euro environment, a European exporter would be wise to consider an FX tarn with conversion, says Christophe Bouculat, senior FX structurer at Calyon in Paris
Improver knock-in forward for dollar bears
With the widely held belief that dollar/yen has scope to fall much further, Royal Bank of Canada's financial engineering team in London proposes a solution for a client wanting to buy US dollar forwards at more attractive rates. An 'improver knock-in…
ABN Amro AM launches new currency products
AMSTERDAM – ABN Amro Asset Management (AAAM) is launching two new currency products for institutional investors and high-net-worth clients.
The one-year physically settled average rate forward
Capping and flooring a daily cable fixing rate offers a UK corporate with US dollar receivables an attractive risk/reward profile for zero premium, says Selene Chong, of HSBC’s FX structuring team in London