Integrates concepts such as transaction, translation, accounting risk, balance sheet risk, and economic risk into a logically consistent framework for the study of currency risk and its management. Presents the main techniques of risk management, discussing the problem of monitoring performance. Identifies the options of using aggressive and defensive postures and a lot or a little resource to manage currency risk. Includes practical examples to quantify the various lessons.
|Product dimensions:||6.10(w) x 9.25(h) x (d)|
Table of Contents
DEFINITIONS AND FUNDAMENTALS.
What is So Difficult About Defining Currency Risk.
The Definition of Economic Currency Risk.
Definition of Trading Risk.
Balance Sheet Risks.
The Floating Currency and Accounting Background.
Can We Forecast Exchange Rates?
Accounting Conventions for Currency Transactions and Currency Translations.
THE TOOLS OF RISK MANAGEMENT.
Currency Matching and Forward Cover.
Currency Borrowings, Back-to-Back Loans, Swaps, Currency Deposits.
Netting of Exposures, Hold Accounts, The Exposure Matrix, Leading and Lagging.
MANAGING TRADING RISKS AND INTRA-GROUP RISKS.
Life Cycle of a Currency Exposure.
Managing Ordinary Trading Risks: Some Methods.
Managing Ordinary Trading Risks: Principles.
Managing Trading Risks of Large Contracts.
Managing Risks from Intra-Group Transactions.
MANAGING AND IDENTIFYING BALANCE SHEET.
What Assets and Liabilities are Part of the 'True' Balance Sheet Risk?
The Borderline Between Trading Risk and Balance Sheet Risk.
Should We Manage the Accounting Risk Rather Than the True Balance Sheet Risk?
THE REMAINING PROBLEMS OF MANAGING BALANCE SHEET RISK.
The Relationship Between Inflation, Currency Movements and Interest Rates.
When to Hedge and for What Maturities.
Political Risk and Tax Problems.
The Issues of Balance Sheet Risk Management Reviewed.
CORPORATE OBJECTIVES, POLICIES AND ORGANIZATION.
Corporate Attitudes and Objectives.
How to Set Corporate Objectives, Policies and Procedures.