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FX hedging for an Italian corporate
Case studies

FX hedging for an Italian corporate

Background
  • Italian corporate with positive USD and GBP EBITDA, whilst EUR being cost currency
  • Hedging mostly conducted by way of “flexible” or “window” forwards
  • Hedging decisions often made on an ad-hoc basis with varying hedge notional amounts depending on market environment; GBP exposure left unhedged
Our Approach
  • Produce an analysis paper demonstrating the company’s sensitivity to FX movements and laying out potential alternatives to the current hedging approach
  • Demonstrate the advantages of hedging with regular forwards and early close-out instead of flexible forwards in the context of adverse forward points
  • Conduct a live benchmarking with relationship banks to assist with implementation of new hedging strategy
Benefits
  • Well-formulated hedging strategy tailored to the business’s objectives and operating environment
  • Streamlined process for currency hedging programme: no more market-driven ad-hoc decision-making and over-engineering of hedging products
  • Competitive and at-market pricing from relationship banks due to live benchmarking
 

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Contact us

If you need hedging or debt advice or would like to speak about how we could help your business, please get in touch.