Currency Risk

Variance is an independent provider of foreign exchange risk hedging advisory services. After assessing the clientÔÇÖs risks, objectives and constraints, we help identify the various tools that address the risks: Foreign Exchange forward contracts, vanilla options, barrier options, collars, or other structured solutions.

Companies doing business in different countries or paying/receiving cash flows in different currencies are exposed to foreign exchange risks (also known as translation risk). Clients partner with us to address foreign exchange risks. Examples include the following:

  • A corporation repatriating foreign profits
  • An investment fund hedging foreign currency denominated assets
  • Private equity firm hedging cross-border investments
  • Private company hedging an account payable to a foreign supplier
  • A hotel owner hedging equity investments in a foreign property portfolio

Once a particular hedging strategy has been selected, Variance will work to put the documentation in place and efficiently execute each transaction, whether through competitive auction or negotiation with a single financial counterpart.

Variance accompanies the client along all the steps involved in the process. Variance produces all reporting for a proper follow-up and assists the client in dealing with all accounting issues that arise from the transactions.