| Title: | The Digital way of working |
| Moderator: | QUARK::LIONEL ON |
| Created: | Fri Feb 14 1986 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 5321 |
| Total number of notes: | 139771 |
anyone know how DIGITAL hedges against currency fluctuations, and on
what basis ?
also, who do we buy our currency futures contracts from ?
if I wanted to price a multi year contract in, say, YEN, and protect
the customer against any fluctuation (they want to purchase in one
currency, but deliver worldwide) over the duration, then what I want is
to do a bid-specific hedge.
anyone done this ? where do i start ?
AW
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 5222.1 | BBRDGE::LOVELL | � l'eau; c'est l'heure | Thu Apr 03 1997 02:33 | 24 | |
I've sold a currency protected contract. Sold in dollars, recognised
in territory A in � sterling, converted to product line rollup reports
in dollars, delivered with multiple local currency cost factors, all
protected against decline in local currency revenue transfer due to
possible decline in value of the dollar.
In those days (Digital Consulting?), we had our own financial advisor
assigned to large international projects and a PARB (Project Approval
Review Board) was convened as part of formal risk assessment. During
the PARB, the currency risk was pointed out and a corporate finance
guru assigned. For us on the project it was transparent but I know
that behind the scenes,there was a lot of sspecial setup involving
our international re-billing and currency hedging company (DEIbv in
the Netherlands).
Hedging currency costs you something. You have to have a pretty big
contract to make it worthwhile.
That's all I can tell you. Digital Consulting is gone, the finance
person from Geneva is gone, the customer contract is finished, the
office from where I sold the contract is closed but DEIbv is still in
businesss - try looking them up in the phone book.
/Chris/
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| 5222.2 | thanks | RDGENG::WILLIAMS_A | Thu Apr 03 1997 03:57 | 1 | |
thanks ! | |||||
| 5222.3 | fame at last,Barry! | ANNECY::HOTCHKISS | Thu Apr 03 1997 07:23 | 3 | |
Have a chat with Barry Joyce in Geneva.He has done lots of PC Utility
bids and should be able to give you some pointers on this.
cheers
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| 5222.4 | Try corporate treasury | USCTR1::KAMINSKY | Thu Apr 03 1997 12:39 | 5 | |
In most companies, currency hedging is done by the corporate treasury
department. Someone there might be able to point you in the right
direction.
Ken
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| 5222.5 | Call Hilary DeZoysa | CHEFS::WINWOOD_C | Thu Apr 03 1997 15:09 | 9 | |
If the bid is that big it will appear at a European PARB at the very
least. I would ask your friendly Project finance person assigned to
the bid to take the problem. I have heard of a number of past projects
needing this type of support so it's not a unique problem.
If you can't find anyone at all call the top man in UK for project
finance who is Hilary DeZoysa.
Calvin
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| 5222.6 | Thanks, again | RDGENG::WILLIAMS_A | Fri Apr 04 1997 06:32 | 1 | |
thanks for the pointers. We seem to have the right people lined up. | |||||