VoiceOver users please use the tab key when navigating expanded menus

These publications are published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia on its Institutional website. 

If you choose to access these materials, you agree that the Website Terms of Use apply.  These publications are intended as thought-leadership material.  They are not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy.  The information in these publications is not intended to influence any person to make a decision in relation to a financial product or class of financial products.  It is general in nature and does not take account of the circumstances of any individual or class of individuals.  Nothing in these publications constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services.  All information contained in these publications is based on information available at the time of publication. While the publications have been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of these publications or the use of information contained in these publications.  ANZ does not provide any financial, investment, legal or taxation advice in connection with these publications.

If you are resident or located in the United States of America, you agree that you are not acting on behalf of a natural or individual (including yourself) “U.S. person” (as defined in Regulation S of the U.S. Securities Act of 1933, as amended) and you agree not to transmit or otherwise send any information on this website to any natural or individual person in the USA or to publications with a general circulation in the USA.

If you are resident or located in New Zealand, you are a “wholesale client” under the Financial Advisers Act 2008 (NZ), as amended.

Please confirm that the above statements are correct.

I AGREE I DISAGREE

CASE STUDY: FX Risk Management

Large Currency Transactions and Hedging

Tags

  • Food & Beverage
  • Foreign Exchange
  • New Zealand
  • Philippines
  • Risk Management

“ANZ has a dealing team that truly understands the intricacies of the NZD/USD pair.”

manage risk & exposure

We have a range of solutions to suit your needs.

Find out more about better management of your foreign exchange risk with ANZ.

Read more

We funded a major NZD$1bn acquisition in New Zealand with NZD debt, but wanted to repay it using our USD surplus. We knew doing this would expose us to an NZD/USD currency risk that needed hedging, so we went looking for a bank that would give us the best possible price.

ANZ’s dominant positon in NZ and access to NZD liquidity meant they were able to execute our large-scale transaction in one go and provide us with the best price.

The ANZ deal team did everything:

  • Obtained the necessary clearance from the Philippines and Singapore-based trading, credit and Credit Valuation Adjustment (CVA) teams.
  • Developed, evaluated and discussed with us targeted hedging ideas including Cross-Currency Swap, FX Options and Coupons Swaps and FX Forwards.

In the end we decided to hedge our currency risk using an FX Forward Contract because it locked on the exchange rate at maturity and was straight forward to execute.

When we felt that the market was ready for us to hedge, ANZ provided a dealable price and executed the contract in one go with the lowest execution price.

 

Our customer would like to remain anonymous. 

RELATED INSIGHTS & CASE STUDIES

insight

Capital Issuance: China's C-ROSS Compliant Regulatory Capital Bonds

The issue of China Life's Perpetual Note marked a new precedent for Financial institutions regulatory capital bonds in China.

Read more

case study

FX Risk Management: Confidentiality, Settlement and Large Currency Execution

Key factors to consider when executing large currency trades.

Read more

insight

Interest Rates & Currencies: Asia Pacific Currencies in a 'Fed' Tightening Cycle

The relationship between US interest rates cycles and APAC currency performance isn't that clear cut.

Read more

For a full set of relevant disclosures, please visit the link below.

View disclosures