Recently, a large U.S. company executed a sizable portfolio of cross-currency derivatives to hedge its international exposure. As it evaluated prospective swaps trading partners, the company—let’s call it XYZ Corp.—was surprised by both the size and the variance in credit-charge markups proposed by the different banks. It was also concerned about the significant credit risk posed by some of the banks and was unsure how best to manage this exposure.
U.S. currency's weakness expected to persist as central banks normalize policy.
How to build a program that mitigates the companys exposures to commodity price swings.
Original research project explores how companies are managing the credit risk posed by their trading partners and financial counterpartiesand how they could be managing it better.
Sponsored by OANDA
Follow these 4 steps to help protect profit and avoid currency related losses while doing business across borders.
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