A German based but global supplier of domestic materials to the building industry had a large commercial exposure to the US construction industry. This position was further exacerbated by it having significant Canadian costs and therefore an exposure to the USD/CAD exchange rate.
- Supplement the client team to support them in identifying FX hedging requirements;
- Support management in its interactions with the banks executing the FX hedges;
- Validate the appropriateness of the rates being quoted;
- Assisted the company with managing its hedging programme on an ongoing basis.
Results & Recommendations
By supporting the assessment of the FX exposures, organizing the hedging programme and then being ‘on the call’ for each of the hedge executions, PMC was able to assist the business to manage its risks appropriately.