Can someone help me understand hedging mechanism from using FX forwards vs Swap? So say for instance, I pulled a HKD RMB forward curve from Bloomberg. What is the rationale for having the respective curves - what conclusions am I supposed to draw from say a 3 year forward curve vs a 3 year swap rate? I have seen PE firms use the 3 year swap rate to hedge proceeds for instance.
Trending Content - Private Equity Forum
| +65 | London MF REPE is paradise | 5 | 3h |
| +26 | The Difference Between a Good Business and a Good Acquisition | 7 | 1d |
| +18 | Career / Life Crossroads | 5 | 1d |
| +14 | Partners misalignmet common? | 4 | 3d |
| +14 | Opinions on DTCP? | 5 | 9h |
| +11 | on-cycle possible after lateraling? | 2 | 1d |
| +11 | Late 20’s career switch into IB/PE/REPE -realistic? | 3 | 2h |
| +10 | How to prep for HH calls? | 3 | 4d |
| +10 | PE Associate Recruiting from a PE Analyst Program | 3 | 19h |
| +9 | Why India’s SME Market Is Getting More Interesting | 1 | 1d |
Career Resources
Swaps are a series of exchanges (fixed to float, etc.) that transact intermittently. Forwards are just contracts to lock in a rate for a one-time transaction in future.
Ipsa dolores fuga asperiores aut libero maiores vel. Totam et aliquid id. Est explicabo et qui sequi architecto. Pariatur inventore voluptate neque facere deserunt libero. Officia ullam cumque et. Qui delectus sint dolore excepturi eveniet modi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...