Corporate treasurers, in managing their foreign currency payables and receivables, are continually forced to decide whether to deal forward or to wait and to deal spot in the…
Abstract
Corporate treasurers, in managing their foreign currency payables and receivables, are continually forced to decide whether to deal forward or to wait and to deal spot in the future. The forward market provides a market where, for a price, the risk of adverse foreign exchange rate fluctuations can be sold off to professional risk bearers. The last ten years have seen considerable turmoil in the foreign exchange markets. In this article I want to examine several issues. Firstly, how do you measure the cost of forward cover under flexible rates and has there been any change in the cost of cover of flexible compared with fixed rates? Secondly, to what extent is the forward market a reliable forecaster of future spot rates? Thirdly, what, if any, are the corporate hedging implications of the behaviour of the forward market?
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The theme of this issue of Managerial Finance is managing corporate tax. Accompanying contributions address capital budgeting, financing, dividends, and financial reporting.
With ticket sales for the annual dinner at Grosvenor House, London, soaring towards the 500 limit, a last‐minute switch resulted in British Lubricants Federation Members and…
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With ticket sales for the annual dinner at Grosvenor House, London, soaring towards the 500 limit, a last‐minute switch resulted in British Lubricants Federation Members and guests at the recent November function being directed out of their favourite Ballroom haunt into the bigger, and grander, aptly‐named Great Room.
WHOEVER chose the guest speaker for the British Lubricants Federation annual dinner at Grosvenor House, Park Lane, London in November, deserves an honourable mention in the…
Abstract
WHOEVER chose the guest speaker for the British Lubricants Federation annual dinner at Grosvenor House, Park Lane, London in November, deserves an honourable mention in the committee minutes. Speakers in recent years have included a Member of Parliament, a well‐known clergyman TV‐personality, a peer of the realm and a BBC news‐reader.