TIPCO claim new levels of FX hedge efficiency whilst cutting FX dealing costs
Alex Fleischmann, Head of Market Development - International at TIPCO describes their new FX-hedge portfolio optimiation module and how it can be applied. It replaces “gut-feel and rule-of-thumb” FX strategy with a systematic approach that is based on detailed mathematical and statistical analyses.
It gives the corporate treasurer and the CFO a solid layer of analysis and comfort to be able discuss and explain their strategy.
The WEBchat covers:
- FX risk management: Why is it so hard to get it right?
- FX-hedging without TIP: “We hedge 50% of our currency exposures.”
- FX-hedging with TIP: “We achieve a target risk at minimum costs.”
- Three easy steps to a more efficient, less costly hedge portfolio in TIP.
- Key timing points
- 1:15 Why FX management is so hard
- 3:30 The dangers of gut-feeling/rule-of-thumb FX management
- 5:30 Optimising hedge ratios across your currency portfolio
- 8.12 The three steps in optimising FX hedging
- 13:00 Closing summary
- 14:00 What is role of TIP and TMS
CTMfile take: This is an example of how modern technology and the new calculation modules open up new levels of FX-hedging optimisation, enabling corporate treasurers, at long last, to move away from gut-feeling/rule-of-thumb based FX strategies.
TIP – The Treasury Information Platform
What it does for the corporate treasury department
Tips for treasury & payments
Useful ’How to’ tips in Treasury Alliance Group’s “Clearing the Fog - The State of Treasury and Payments Technology” report
% FX hedged no longer cuts it
Bloomberg new service shows strategic approach to FX risk management required balancing currency earnings-at-risk v. cash-flow-at-risk