In the first article of this two-part series on hedging, we discussed two best practices in hedging policy management. In this article – part two of the series – we ask a precursor question: should my firm be hedging? The answer to this question will vary by firm and will depend on the circumstances surrounding the decision to hedge. Answering this question first requires asking a few other questions:Read More Should my Firm Hedge?
In an economic environment with a strengthening dollar, a weakening euro and yen, and a steady anticipation of interest rate hikes in the US, the topic of currency hedges comes closer to the spotlight particularly for multinational firms with presence in the US, Europe, and/or Asia. As a result, firms with greater currency risks that have not previously hedged currency may be evaluating whether now is a good time to start. As the experts in value management, value strategy, and value creation, we outline below two items of importance in implementing and managing a hedging policy.