Thursday, October 19, 2017 New York : London: India: Tokyo:

 

FOREIGN CURRENCY RATE RISK MANAGEMENT

 

1. We advise the clients on the strategies to be adopted for effective risk management on the floating/fixed rate foreign currency liabilities.

 

2. The rate hedge focus shall be on the average maturity of the loan and currency of borrowing.

 

 

3. We help our clients to prepare scenario and sensitivity analyses to determine the entry level for undertaking the interest rate swap transaction on a back-to-back basis with the loan repayment schedule to attain the perfect hedge status.

4. We also offer research reports on the interest rate outlook of major currencies to help determine the target level of nominal financing cost on foreign currency liabilities.

5. We also assist the clients to carry out an exercise at the end of each financial year to arrive at an effective interest cost on the loan liabilities during the financial year after recognizing the transaction and translation losses on each item of foreign currency loan availed by the company.

6. We are also helping the clients to have in place a well-documented risk management policy for guidance & action by the treasury team.

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