Tag: Currency hedging

  • Positive M&A outlook could boost deal contingent hedges

    Positive M&A outlook could boost deal contingent hedges


    Dealers expect an increase in deal contingent foreign exchange hedging activity in 2025, in conjunction with heightened takeover deals from corporates and private equity firms in the latter part of the year.

    “We’ve certainly seen an uptick in deal contingent hedging,” says Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS. “Compared to 2022 the number of DC trades is magnitudes higher now, simply because of the far higher deal flow.”

    As of March 4, the total year

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  • Corporates pressed on FX hedges as dollar surge bites

    Corporates pressed on FX hedges as dollar surge bites


    Foreign exchange losses have begun to mount for some of the largest global corporates, with the likes of Amazon, Apple and Nike reporting revenues negatively affected by continued US dollar strength in the fourth quarter.

    Since September, the dollar has risen by as much as 7% against many G10 and emerging market currencies, reducing the demand for exports and the value of foreign returns.

    In the past, it was common for analysts and investors simply not to ask about or even consider the FX hedging

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  • Corporates eye complex FX hedges as carry costs mount

    Corporates eye complex FX hedges as carry costs mount


















































    Corporates eye complex FX hedges as carry costs mount – FX Markets



    Leveraged forwards and options-based structures entice treasurers facing rates uncertainty and FX volatility


    The shake-em-up economic policies trailed by new US president and so-called “disruptor-in-chief” Donald Trump have left corporate treasurers on both sides of the Atlantic nervously eyeing their cost of foreign exchange hedging.

    FX volatility has spiked amid continued threats by Trump of tough tariffs on Canada, Mexico, China and the European Union. Meanwhile, interest rate differentials between the US and Europe are expected to widen as analysts forecast higher-for-longer rates from the Federal

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  • Iosco pre-hedging review: more RFQs than answers

    Iosco pre-hedging review: more RFQs than answers


    Consultation papers are like tea leaves or runes: observers study them for clues to future actions or events.

    Such is the case with Iosco’s latest consultation paper on the controversial practice of pre-hedging. The document, released last November, has raised niggling concerns among market participants that the global standard-setter may be weighing tighter rules on pre-hedging, particularly for trades conducted using request-for-quotes, or RFQs.

    Dealers have warned that such restrictions could

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  • Does no-hedge strategy stack up for mag seven mavericks?

    Does no-hedge strategy stack up for mag seven mavericks?

















































    Does no-hedge strategy stack up for mag seven mavericks? – FX Markets



    At Amazon, Meta and Tesla, the lack of FX hedging might raise eyebrows, but isn’t necessarily a losing technique


    The so-called magnificent seven – the seven largest US tech companies that famously make up more than a third of the S&P 500 by market cap – are among the world’s largest firms. They also have some of the greatest geographical distributions – in some cases operating in over 100 countries.

    Yet filings for these tech giants show that three of them – Amazon, Meta and Tesla – choose not to hedge their day-to-day foreign exchange exposures. They reveal no holdings of offsetting FX derivatives

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  • Amazon, Meta and Tesla reject FX hedging

    Amazon, Meta and Tesla reject FX hedging

















































    Amazon, Meta and Tesla reject FX hedging – FX Markets






    FX Markets study shows tech giants don’t hedge day-to-day exposures


    Tech-titans-shun-FX-hedging

    Amazon, Meta and Tesla – three of the so-called magnificent seven tech firms that drive US stock market performance – decline to hedge their day-to-day foreign exchange exposures. So concludes a study by FX Markets of the firms’ quarterly filings over the past five years.

    Corporates operating in dozens of countries typically hedge the FX risk from their foreign revenues and expenses with derivatives. But a study of the three companies’ filings shows no evidence of any FX hedging activity. What’s

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