Balance Sheet Hedging

Is your FX remeasurement process creating unwanted losses on your Income Statement?

balance sheet hedging by Corpay risk management team
balance sheet hedging by Corpay risk management team
forex hedging strategy

Reduce the likelihood of a foreign exchange loss

By outsourcing your balance sheet hedging to Corpay, we provide you with a global, consolidated view of exposures, reducing the scale and likelihood of a foreign exchange loss in each accounting period. Our solution uses advanced analytics to identify Value at Risk for a range of time periods and confidence intervals, helping you manage volatility on your balance sheet from FX remeasurement and reducing hedging transaction costs by adjusting and rolling hedges less frequently.

Benefits of outsourcing balance sheet hedging to Corpay team with fx hedging

Essential features and benefits

  • Data capture, allowing you to create an ERP extract report with balance sheet exposures

  • Data aggregation, run through our proprietary algorithms to calculate net exposures and assess global value at risk

  • Advanced analytics, where a historical Value-at-Risk analysis provides insight into currency correlations in the portfolio to identify which exposure pairs are causing the most risks and may require an FX hedging strategy, and which pairs may be providing a benefit

  • Net exposure levels are clearly defined and identified as long and short currency positions by currency pair, providing a simple set of triggers for hedging activity

  • Hedge scenarios are provided based on your pre-defined hedge policy mandates, along with views of different hedge scenarios at different coverage levels

  • Currency hedging execution, rolling short-term forwards or other instruments to hedge material net exposures

Discuss your needs with one of our consultants

Talk to us about how we can help solve your payment pains.