Foreign Exchange Hedging for Corporations

Why Should You Attend:

The last 18 months have seen unusually large foreign exchange (FX) moves between major currencies and emerging market currencies such that FX is a hot topic for any corporate management with FX exposures. For publicly traded companies, the number of questions from equity analysts and from investors is at an all-time high. Impact on reported earnings have been large (US corporates showed FX losses of $19 billion in Q3 2015 alone). This brings greater scrutiny and focus onto corporate FX hedging policies.

This webinar will describe the types of transactions that create FX exposures, the types of hedge programs that are typically executed by corporations and some best practices in corporate FX hedging.

Learning Objectives:

• Learn why companies hedge FX exposures
• Understand how to establish objectives for a hedging program
• Audit your current hedge practices against some hedging best practices
• Learn the types of FX hedge programs typically utilized by corporations
• Learn some of the hedge instruments typically used by corporate hedgers such as forwards and collars
• Understand the concept of view-neutral hedging
• Gain an understanding of the pros and cons of different timing strategies for executing hedges

Areas Covered in the Webinar:

• Why FX has been a focus of corporate managers in recent years
• Why do companies hedge foreign exchange
• How corporates determine what constitutes an FX exposure
• Hedgeable exposures/typical corporate hedge programs
• Balance sheet hedge program
• Forecast cash flow hedge program
• Intercompany loan hedge program
• Quantifying/assessing FX exposures
• Accounting issues for FX hedging

Who Will Benefit:

• C-level managers (CFO, CEO, COO)
• Treasurer
• Corporate treasury including analysts, managers and directors
• Corporate controller and staff
• Business unit financial leaders
• Accounting personnel
• Compliance staff
• Risk personnel
• Audit staff
• Fund managers and administrators
• Brokers and dealers
• Insurance and mutual fund companies
• Money service businesses
• Banks

Instructor Profile:

Jonathan Wetreich has spent 20 years working in the foreign exchange markets, beginning with the Treasury Group at Honeywell International where he managed the foreign exchange execution and hedge programs and was responsible for managing the risk to this multinational firm from changes in foreign exchange rates. At Brown Brothers Harriman, a private bank, his positions included a consultant to the senior management of corporations to improve their foreign exchange risk management and execution.

Mr. Wetreich also spent several years there on the foreign exchange trading desk, working primarily with corporate clients and asset management firms, as well as spending time as an FX strategist, authoring commentary on news and market activity. Since 2012, he has been an independent consultant to corporations on matters of foreign exchange risk management. He received his MBA from Columbia Business School.

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