FX Exposure Tool

Exposure Tool launched

The reaction from our partners and corporate clients to the launch of Hedgebook’s Exposure Tool has been hugely satisfying. The Exposure Tool combines foreign currency cashflow forecasts with fx hedging derivatives to provide a clear…

FX strategy tool

PwC New Zealand and Hedgebook team up to co-develop the FX Strategy Tool

PwC New Zealand, a leading treasury advisory provider in New Zealand, has collaborated with treasury software developer, Hedgebook, to create the foreign exchange hedging Strategy Tool. The Strategy Tool is an add-on module to the…

FX hedge portfolio

Structured options: part of a balanced FX hedge portfolio

Somewhat ironically, it is our observation that structured option products for FX hedging are heavily used by small-to-mid sized commercial firms and often overlooked by larger organisations. Many treasury policies exclude exotic options, unless approved…

NZTE Ready for Launch 2016 Showcase

Hedgebook was delighted to be selected as one of twelve companies to pitch at the NZTE showcase event in Hawke’s Bay on November 2. The Rockit Apples pack-house in Havelock North was transformed into an…

How to better understand the impact of FX hedging decisions

Companies will often hedge foreign currency exposures against harmful exchange rate fluctuations. Having decided to enter financial instruments, such as forward exchange contracts and options/collars, it is necessary to evaluate the performance of the hedging…

Nobody said it was easy

While I am sure when Coldplay sang “Nobody said it was easy” they weren’t talking about FX hedging (unless they were thinking of repatriating some of their royalties), it doesn’t have to be as uncertain…

How to better understand the impact of FX hedging decisions

Companies will often hedge foreign currency exposures against harmful exchange rate fluctuations. Having decided to enter financial instruments, such as forward exchange contracts and options/collars, it is necessary to evaluate the performance of the hedging…

Using Hedgebook to make smart fx hedging decisions

Has anyone told you lately that they know where the currency is going? Lots of people think they know if it is going up or down but the reality is that no one knows where…

Hedging, and a deeper look into the types of Financial Hedges

Financial hedging involves buying and selling foreign exchange instruments that are dealt by banks and foreign exchange brokers. There are three common types of instruments used: forward contracts, currency options, and currency swaps.

Explaining Different Types of Exposure Risk

Importers and exporters alike face foreign exchange risk, or currency risk, when engaging in economic activity outside of their domestic currency. As explained in an earlier blog post, currency risk materializes for exporters when exchange rate volatility results in the company repatriating fewer revenues abroad, when the domestic currency strengthens relative to the foreign currency. For importers, this risk is the exact opposite: currency risk materializes when the domestic currency weakens relative to the foreign currency.

Hedging Basics: Currency Swaps

A currency swap locks in a price of a currency pair and is another tool that can be used to manage an organisation’s cash flow. It pays the fixed-price buyer of a currency pair a payout equal to the difference between the current price and the settlement price of the swap.

Hedging Basics: Average Price Currency Options

Movements between currency pairs can be swift and choppy. Using average price currency options can be a significant help in smoothing a corporation’s cash flows.