Deal contingent forward - Revision history

imported>Doug Williamson: Add links.

2022-09-10T20:38:40Z

Add links.

← Older revision		Revision as of 20:38, 10 September 2022
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	== See also ==		== See also ==
	* [[Acquisition]]		* [[Acquisition]]
			* [[Contingency]]
			* [[Contingent]]
	* [[Equity]]		* [[Equity]]
	* [[Foreign exchange forward contract]]		* [[Foreign exchange forward contract]]

imported>Doug Williamson: Add link.

2022-07-14T11:20:38Z

Add link.

← Older revision		Revision as of 11:20, 14 July 2022
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	<span style="color:#4B0082">'''''Reverse complexity'''''</span>		:<span style="color:#4B0082">'''''Reverse complexity'''''</span>

	:"There is quite often a risk around the FX of these transactions, which comes from the fact that we are raising equity in sterling to make a euro transaction acquisition.		:"There is quite often a risk around the FX of these transactions, which comes from the fact that we are raising equity in sterling to make a euro transaction acquisition.

imported>Doug Williamson: Categorise.

2018-08-08T13:42:17Z

Categorise.

← Older revision		Revision as of 13:42, 8 August 2018
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	* [[Hedging]]		* [[Hedging]]
	* [[Transaction]]		* [[Transaction]]

			[[Category:Manage_risks]]

imported>Doug Williamson: Layout.

2018-08-04T10:06:13Z

Layout.

← Older revision		Revision as of 10:06, 4 August 2018
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	''Foreign exchange ~~(FX)~~ risk management''.		''Foreign exchange risk management''.

	A deal contingent forward is a specialised forward foreign exchange contract.		A deal contingent forward is a specialised forward foreign exchange (FX) contract.

	The hedging customer is only obliged to fulfil the contract if a planned major transaction, such as an acquisition, occurs.		The hedging customer is only obliged to fulfil the contract if a planned major transaction, such as an acquisition, occurs.

imported>Doug Williamson: Create page. Source: The Treasurer, Aug 2018, p18.

2018-08-04T10:00:01Z

Create page. Source: The Treasurer, Aug 2018, p18.

New page

''Foreign exchange (FX) risk management''.

A deal contingent forward is a specialised forward foreign exchange contract.

The hedging customer is only obliged to fulfil the contract if a planned major transaction, such as an acquisition, occurs.

<span style="color:#4B0082">'''''Reverse complexity'''''</span>

:"There is quite often a risk around the FX of these transactions, which comes from the fact that we are raising equity in sterling to make a euro transaction acquisition.

:Obviously, if the relative value of sterling and the euro changes between the point that you commit to raise the sterling and spend the euros, there is a risk associated.

:That involved us putting in place a deal contingent forward.

:This is basically a forward contract where the banks agree with you that if the transaction does not occur, then it expires worthless, but if the transaction goes through, then you get a specific FX rate."

:''Adam Richford FCA FCT, Group Treasurer, Renewi, The Treasurer, August 2018, p18.''

== See also ==
* [[Acquisition]]
* [[Equity]]
* [[Foreign exchange forward contract]]
* [[Foreign exchange risk]]
* [[Forward contract]]
* [[Hedging]]
* [[Transaction]]