Other Financial Management Topics

Financial Management

Hedging Interest Rate using Smoothing

Hedging Interest Rate using Smoothing When taking out a loan or depositing money, businesses will often have a choice of

Hedging foreign currency loan using currency swap A currency swap is an agreement in which two parties exchange the principal

Hedging Exchange Rate | Currency risk using Options Options are radically different. They give the holder the right, but not

Hedging Exchange Rate | Currency risk using Currency futures Simply think of these as items you can buy and sell

Hedging Exchange Rate | Currency risk using Money market hedging Let’s say that you were a UK manufacturer exporting to

Hedging Exchange Rate | Currency risk using Forward exchange contracts A forward exchange contract is a binding agreement to sell

Hedging Exchange Rate | Currency risk using Leading and lagging Let’s imagine you are planning to go to Spain and

Hedging Exchange Rate | Currency risk using Matching If you have a sales transaction with one foreign customer, and then

Hedging Exchange Rate | Currency risk using Netting If you owe your Japanese supplier ¥1m, and another Japanese company owes

Hedging currency/Exchange Rate risk using own currency invoice Arrange for the contract and the invoice to be in your own

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