Timeline for Why using 3 months forward to hedge fx risk on a fund of funds portfolio?
Current License: CC BY-SA 3.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jun 19, 2013 at 14:56 | comment | added | Matt Wolf | Nothing wrong with that approach as I said as long as there are no contingent cash flows. | |
| Jun 19, 2013 at 6:53 | comment | added | humble.jok | What do you recommend then? My new employer (who's from my previous company ;) ) wants to replicate that behaviour. | |
| Jun 19, 2013 at 2:11 | comment | added | Matt Wolf | This only works for fixed investments without any future cash flows so I agree with you. Just wanted to point out if we talk about assets that involve future cash in or outflows then forward strips are a very bad idea. Think of airlines which need to hedge against future price increases in kerosine. They are only insulated for the duration of each forward thus the exercise turns more into predicting future cash flows rather than pricing forwards. | |
| Jun 18, 2013 at 5:13 | vote | accept | humble.jok | ||
| Jun 17, 2013 at 17:16 | review | First posts | |||
| Jun 18, 2013 at 13:52 | |||||
| Jun 17, 2013 at 17:00 | history | answered | RaveTheTadpole | CC BY-SA 3.0 |