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.