Currency hedge

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Currency hedge

Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks).

Currency Hedge

In equities, the act of holding a position in a stock denominated in a foreign currency while holding an equal but opposite position in the currency itself. This protects the investor from fluctuations in the value of a currency adversely affecting the stock holdings.
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Despite higher second-half demand, sterling weakness has caused "a significant increase" in On the Beach prices compared to "competitors with currency hedges".
CFO Marcus Kuhnert told the Journal that the pharmaceuticals company shortened the horizon of its currency hedges to one year from three years while expanding the hedging program to cover revenue in all currencies in which it operates.
Tax charge is $16m, compared with the charge of $58m for 2017 (the variance largely arising from the tax treatment of currency hedges).
Tax charge is US$16 million, compared to the charge of US$58 million for 2017 (the variance largely arising from the tax treatment of currency hedges in BAB noted above).
Key structural protections includes a capital call facility to fund capital calls in the event of a cash shortfall, a liquidity facility to bridge liquidity gaps to cover interest and expenses, a reserve account for the class A-1 and class A-2 bonds, currency hedges to pay interest and principal of class A-1 bonds in Singapore dollars and hedge euro exposure, and long final maturities on the bonds to allow the structure time to weather a down market.
Summary: The rising cost of currency hedges may require a rethink for fixed income portfolios
The refinancing transaction, when combined with new currency hedges recently implemented to effectively retain the company's previous euro-denominated debt mix, results in annualized cash interest savings of approximately USD 30 million.
The refinancing transaction, when combined with new currency hedges recently implemented to effectively retain the companys previous euro-denominated debt mix, results in annualized cash interest savings of approximately $30 million.
Calculated at current foreign exchange rates, the arrangement, including the gain on sale and currency gains on pre delivery payments and currency hedges, is expected to have a positive, non-recurring effect of approximately 90 million euro on Finnair's operating profit.
"This currency exposure has been offset by the rand value of applied hedge instruments held to protect against these risks and the impact that these risks may otherwise have had on the successful good-bank transaction," Jones said, without giving more detail about Abil's currency hedges.
Maruti Suzuki's import costs were equivalent to about 20 per cent of its sales, and the company has currency hedges only till the end of June, Seth added.
“This decision means that the way companies designate and process currency hedges will likely be very different between IFRS 9 and IAS 39.