Members whose companies have material exposure to the Chinese market exchange experiences with how to manage the currency risk. What’s the best course of action when corporates need to blunt their growing cash-flow exposures in China? The answer, hedge. But what’s the best approach? Depends on the company of course. At a recent FX summit of NeuGroup’s two FX Managers’ Peer Groups – which due to COVID-19 was NeuGroup’s first-ever virtual peer group meeting – one session dealt with managing…
August 14, 2019
Balancing CFar and EaR in Order to Optimize FX Hedges
Bloomberg launches dynamic FX hedging model tested by Constellation. After a successful pilot with Constellation Brands, Bloomberg is offering a sophisticated approach to managing foreign-exchange (FX) risk. The new product measures the impact of currency fluctuations on cash flow and earnings and enables a more targeted FX hedging strategy. “This risk management strategy has dramatically changed the way we speak to executive leadership about risk,” said Sandy Dominach, senior vice president and treasurer at Constellation Brands. “We now have a…