Results for tag: "Currency Overlay"

Currency Overlay is a type of corporate finance strategy used to manage foreign exchange risk. It involves hedging a company's exposure to foreign exchange rate fluctuations by using financial instruments such as forward contracts, options, and swaps. The goal of a currency overlay is to protect the company's profits and cash flows from adverse exchange rate movements. The strategy is typically implemented by a specialist currency overlay manager, who works with the company to develop a tailored hedging strategy. The currency overlay market is a growing sector of the corporate finance industry, with many companies offering services to help companies manage their foreign exchange risk. Examples of companies in the currency overlay market include State Street Global Advisors, BlackRock, and BNP Paribas. Show Less Read more