Corporates
Basel III already raising costs for long-dated FX, argue corporates
Panellists at ACT annual conference express concerns about the knock-on effects of Basel III and OTC clearing rules
Lufthansa wary of OTC regulations
Corporates across the globe have lobbied to ensure end-users are not subjected to new clearing requirements for derivatives. For Lufthansa’s treasury department in Frankfurt, ensuring it is able to continue to hedge its foreign exchange and interest rate…
The hedge costs explosion
High volatility in foreign exchange markets over the past year has forced many corporates to reassess their hedge books. A number of banks have increased their advisory services to help companies conduct an in-depth analysis of their exposures as a…
Sentimental value
Naomi Fink, Japan strategist in global markets sales and trading at the Bank of Tokyo Mitsubishi UFJ in Tokyo, assesses the slump in corporate sentiment in Japan, and what this bodes for the country's economic growth
Forex hedging up in US
NEW YORK - Foreign exchange hedging ratios for 2009 year-end by US corporates reached historic levels in the third quarter, as companies sought to cover rising risk from the US dollar's upturn.
Time for a rethink
The weak dollar and high implied volatility in currency markets has claimed a number of victims in the corporate sector. Dealers discuss the shift in clients' hedging strategies. By Gail Mwamba
Corporates wary of forex e-trading
NEW YORK – Corporates have been avoiding the use of electronic platforms in the execution of their foreign exchange trades, with most showing a preference for traditional voice trading.
Asian SWFs increase global share
LONDON - Asian sovereign wealth funds (SWF) are growing at a faster rate than their Middle Eastern counterparts, due to larger balance of payment surpluses, according to a report by the private sector industry body International Financial Services London…
UBS wins A&L's options outsourcing
LEICESTER - Alliance & Leicester (A&L) has contracted UBS to provide foreign exchange options technology to the UK bank.
E-trading comes in many flavours
The future of electronic trading is mapped out by Nick Dyne , chief executive of London-based data management and STP systems vendor Logicscope
Extending forex market reach
There is great scope for further integration between FX and interest rate swap markets, says Philip Whitehurst of independent developer MID Analytics in London
Tullett Prebon launches multi-asset market data service
LONDON – Tullett Prebon Information, the market data division of interdealer broker Tullett Prebon, last week launched its market data service, Mark2Marker.
Managing exposure to forex volatility
Manuel Deijk in the structured FX team at UBS looks at a selection of quantitative methods applied in the implementation of FX risk management policies
The relative merits of zero-premium structures
Zero-premium structures can do a better job as a hedge than a vanilla instrument, when the full cost of insurance is paid. By Kenrick Ramlochan, director, FX analytics and risk advisory at ABN Amro in London
Selling £/$ at favourable rates to the forward
UBS Currency Management Advisory Service suggests using a ratio callable forward to sell GBP/USD at more favourable rates than the prevailing market forward rates
Kissing with confidence is key to FX
Keep it structurally simple (Kiss), says Evan Steed, director FX options trading and sales TD Bank Financial Group. This truism is especially appropriate as the greenback faces an uncertain future and regulatory change comes to Canada
The American-style participating forward
Clients wishing to trade at a pre-specified strike rate during a certain window period, should consider the American-style participating forward, say Bank of America options specialists Jim Kamphoefner in San Francisco and Ravi Chopra in Singapore
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…
Euro doubts remain despite EC growth forecasts
LONDON – Economic growth in the eurozone is set to exceed the European Commission’s forecast of 1.7% in 2004, it said in its quarterly report last week – but analysts remain sceptical that this will be enough to sustain the euro’s current rally.
An average rate option to protect the budget
As euro/dollar continues its descent, Rabobank’s corporate sales desk in Utrecht suggests one way for European corporates to profit from the move
Time is right for early barrier forwards
The high level of volatility in the market makes this an opportune time for corporates to use early barrier forwards to hedge cable risk, says Barclays Capital’s senior FX structurer in London, James Edwards
IAS39 amended for macro hedging
LONDON -- The International Accounting Standards Board (IASB) last week announced an amendment to IAS39 to aid the use of macro hedging.
NAB report: managers axed
FX head and three executives leave NAB in wake of report on forex losses MELBOURNE -- National Australia Bank (NAB) sacked head of FX Gary Dillon on Friday (March 12) after he was criticised by PricewaterhouseCoopers’ independent report into the bank’s A…