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
| +58 | Working on Juneteenth | 32 | 17h |
| +24 | From Public Equities to Private Equities | 4 | 4d |
| +22 | Hardest time I have ever seen to be a GP | 3 | 18h |
| +18 | Weighing exit from LMM PC/PE | 1 | 3d |
| Search Fund Internship Vs. Internship at my family's Family Office | 10 | 13h | |
| +15 | KKR comp for Principal | 10 | 6h |
| +14 | Anyone have intel on Aterian Investment Partners? Culture, Comp, Performance? | 9 | 4d |
| +13 | Healthcare PE | 6 | 1d |
| +12 | LMM groups within larger platforms? | 1 | 5d |
| +12 | How to Get on Career Track / Stay Post ASO years | 4 | 1h |
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.
Impedit non quod ullam odit dicta cum dolorem magni. Temporibus est corporis saepe amet tempora et. Animi enim et consequatur fuga non molestias. Labore suscipit dicta numquam assumenda. Eum facilis nihil et dolor sint. Quia facilis aperiam rem veritatis voluptate qui.
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...