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Deciding to Hedge

Deciding to Hedge

This article discusses key strategic thoughts behind deciding when and how to hedge. It addresses the main pitfalls, inherent and new challenges as well as the education of the board and essential internal hedging reporting.

It also defines the appropriate tools to face (new) accounting issues, with IAS 39 and its ‘son’ coming soon. The OTC derivatives reform and its potential impacts on hedging strategies are also examined.

Key Points

  • To hedge or not to hedge: that is the question
  • Adaptive hedging strategy
  • What to do and what not to do when it comes to hedging
  • Advantages of trading platforms and new technologies
  • Key factors impacting hedging strategies
  • More expensive FX pricing to come?
  • The challenges of OTC derivatives reform
  • Financial exposure
  • Major pitfalls and risks to be avoided for FX hedging strategy definition
  • Key factors impacting hedging strategies

 

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Written by:

expert

François Masquelier

RTL Group

Head of Corporate Finance and Treasury, RTL Group, and Honorary Chairman of the European Association of Corporate Treasurers

This article is available as part of an extensive case studies collection: Tax & Accounting Series

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