PNC offers a full range of FX services
Foreign exchange hedging tools can help you manage foreign exchange risk more effectively, secure pricing and costs, and potentially increase profits and reduce expenses. PNC's dedicated team of senior foreign exchange consultants can help you identify exposures and determine the appropriate risk management tools to effectively hedge global risk, enabling you to benefit from favorable market conditions.
Customized solutions include:
Why Foreign Exchange Options Should be Considered as Part of Your Company’s Risk Management Program
Condensed from an Advisory Series Webinar, this presentation explains various types of options and the pros and cons of each.
Enjoy presentation material recorded October 8, 2015 Watch Now »
Conducting business globally may leave you exposed to currency risk. A common example is the commitment to make or receive a foreign currency payment on a future date. One of the simplest methods of protecting your cost or profit is a forward contract.
Forward contracts can be customized in a variety of ways. All forward contracts protect against adverse currency fluctuation by locking in a worst-case scenario. However, customized product structures provide for flexibility in timing and hedging opportunities in regulated markets.
Global business exposure requires you to hedge your currency risk; however, you want the opportunity to achieve some benefit from a favorable move in the currency markets. A range forward contract may be the answer.
Your company protects against a strengthening euro by executing a range forward contract with a 1.26 floor and 1.30 cap expiring on June 29. If at expiry the EUR spot is:
Global business exposure requires you to hedge your currency risk, even though you still want to be able to take advantage of the opportunity to achieve unlimited benefit from a favorable move in the currency markets. A participating forward contract may be the answer.
A range forward contract is similar to a participating forward contract and provides 100% protection against unfavorable currency fluctuations, while allowing limited participation in favorable market movements up to a predetermined level or cap.
Your company protects against a strengthening euro by executing a participating forward contract with a 1.30 cap and a 50% participation level expiring June 29. If at expiry the EUR spot is:
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