11.3 Currency Risk and Hedging

In this section

• Impact of Exchange Rates on Bond Returns
  Explore how currency fluctuations influence bond returns, with practical examples and strategies to manage exchange rate risk in international investments.
• 11.3.2 Currency Hedging Techniques
  • Forward Contracts in Currency Hedging
    Explore how forward contracts are used in currency hedging to lock in exchange rates for future transactions, including their mechanics, benefits, and limitations.
  • Currency Swaps: Understanding and Utilizing Cross-Currency Swaps for Hedging and Investment
    Explore currency swaps, their role in hedging currency risk, and practical applications in international finance.
  • Currency Options: A Comprehensive Guide to Hedging and Investment Strategies
    Explore the use of currency options in hedging currency risk, including the strategic use of call and put options, cost considerations, and practical applications in the financial markets.