Structured products
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
MAS move could pre-empt peg changes
SINGAPORE -- The Monetary Authority of Singapore’s surprise move last week towards a "policy of modest and gradual appreciation" for the Singapore dollar may be a pre-emptive move to counter Asian peg revaluations.
JPMC fund trio make £55m
LONDON -- Three FX and fixed-income specialists who left JP Morgan Chase to set up a hedge fund have made profits of more than £55 million ($100 million) in their first year.
JPMC fund trio make £55m
LONDON -- Three FX and fixed-income specialists who left JP Morgan Chase to set up a hedge fund have made profits of more than £55 million ($100 million) in their first year.
Profiting from the Chinese yuan
With speculation rife on the revaluation of the Chinese yuan, James Davison of the global FX derivatives marketing team at ABN Amro in London, examines potential ways for derivatives traders to benefit
The zero-cost double KO/KI forward
A double knock-out/knock-in forward may provide a Mexican manufacturer with an effective zero-cost hedge, say Vincent Lee and Richard Stang, vice-presidents in FX sales at TD Securities in Toronto
Volatility and leverage key for Euro importer
Trading volatility allows a European importer to improve its dollar buying rate and mitigate Asian strengthening says Silash Ruparell in European FX sales at Lehman Brothers in London
Cancellable forward beats dollar pendulum
Cancellable forward contracts offer corporates a cheap way of protecting against volatile dollar receivables says Anders Kjaer Jensen, FX strategist at Nordea in Copenhagen
Dual currency forwards to the rescue
Dual currency forwards can offer tangible benefits if used wisely, says Standard Chartered’s Charlie Brown, global head of structuring in London, and Michael Image, structurer for Northeast Asia, in Hong Kong
Correlation for hedging and speculation
One of the most surprising FX developments in the past year has been the re-emergence of the use of correlation products. Ade Odunsi, a director in Merrill Lynch’s FX risk advisory group in New York, suggests two such solutions for a hedging and a…
Hedging dollar dividends back to euro
A European company seeking to protect dividends received from a US subsidiary can benefit from the current inverted volatility term structure in the FX options market. UBS’s FX Solutions group explains how
Reflationary effects on dollar/yen
Strong cross-border portfolio inflows into Japan are unlikely to falter. Consider either Seagull or reverse knock-in option strategies to protect against further yen strength, say State Street Global Markets’ currency options and currency strategy teams
Changes afoot at Merrill Lynch
NEW YORK -- A major restructuring of Merrill Lynch’s FX management is underway, according to sources close to the bank in New York.
Saxo’s FX volume growth builds profits
COPENHAGEN -- Saxo Bank had its most active trading month ever in January, with over $93 billion worth of forex trading on its platform, officials said last week. The volumes represent an increase of over 200% since January 2003, when volumes were $28.5…
CAI, CL chiefs share top posts
PARIS -- Crédit Agricole Indosuez (CAI) and Crédit Lyonnais (CL) executives will share the management of foreign exchange after the two banks’ merger on April 30, it emerged last week.
How to ride out the rising Aussie
The stellar rise of the Aussie doesn’t have to be bad news for Australian exporters. Wes Price, of ANZ Bank’s consultative risk management group in Melbourne, explains why
More banks put money on research
LONDON -- ABN Amro and Barclays Capital are among the increasing number of banks putting money on their trade recommendations for FX. Both have allocated money to start trading on model portfolios this year, joining CSFB, Citigroup and JP Morgan Chase as…
Korean regulations to keep won stable
SEOUL -- Analysts are forecasting more near-term stability for the Korean won, after the South Korean Ministry of Finance and Economics (Mofe) last week introduced regulations aimed at limiting activity in the non-deliverable forwards (NDF) market by…
SPECIAL REPORT: CHINA Opportunity China: banks reveal plans
SHANGHAI -- Top forex banks are stepping up their strategies to win lucrative FX business in China as it gradually liberalises its economy. Major international players are taking steps such as increasing staffing levels in the Asia-Pacific, or carrying…
The kick-knock solution for cable
Trevor Carr, manager in FX options at HBOS Treasury Services in London, suggests a creative solution for a UK parent company wanting to hedge against continuing sterling strength
Euro/Swiss franc risk reversals
Simple risk reversals are the best way for Swiss investors to manage low domestic interest rates and a softening Swiss franc versus the euro, says David Durrant, chief currency strategist and senior economist for the Americas at Julius Baer Asset…
FSA warns over complex products
LONDON -- Financial Services Authority (FSA) chairman Callum McCarthy has warned of the dangers of banks selling complicated financial products to customers who do not fully understand them.
Non-exporters still have exposure to currencies
Options could be the answer for a manufacturing company facing the twin problems of foreign competitors undercutting its prices and of the companies it supplies being less successful with an appreciating currency. Alex Barrett and Demetri Papacostas, of…
Yen and the art of market cycle maintenance
The yen resurgence that began this summer is still in play. But with the Japanese authorities still sporadically intervening in the currency markets, this upward path may meet some sharp setbacks. Simon Derrick, head of Bank of New York's currency…