To learn more about how to
hedge currency impact, click here.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign
currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse
impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse
impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the
impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate
hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or
impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
And as they do, U.S. investors should preferably gain that exposure via instruments that seek to
hedge the foreign
currency impact, as dollar strength means equity gains in local
currency terms will be muted when translated back into U.S. dollars.
2003 - 2005: Why would I ever
hedge the foreign
currency impact on my international stocks?
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the
impacts of integration and restructuring expenses, merger costs, unrealized losses / (gains) on commodity
hedges, impairment losses, losses / (gains) on the sale of a business, nonmonetary
currency devaluation and timing
impacts of preferred stock dividends.
Adjusted EBITDA is defined as net income / (loss) from continuing operations before interest expense, other expense / (income), net, provision for / (benefit from) income taxes; in addition to these adjustments, the Company excludes, when they occur, the
impacts of depreciation and amortization (excluding integration and restructuring expenses)(including amortization of postretirement benefit plans prior service credits), integration and restructuring expenses, merger costs, unrealized losses / (gains) on commodity
hedges, impairment losses, losses / (gains) on the sale of a business, nonmonetary
currency devaluation (e.g., remeasurement gains and losses), and equity award compensation expense (excluding integration and restructuring expenses).
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the
impacts of integration and restructuring expenses, merger costs, unrealized losses / (gains) on commodity
hedges, impairment losses, losses / (gains) on the sale of a business, and nonmonetary
currency devaluation (e.g., remeasurement gains and losses), and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis.
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the
impacts of integration and restructuring expenses, merger costs, unrealized losses / (gains) on commodity
hedges, impairment losses, losses / (gains) on the sale of a business, nonmonetary
currency devaluation (e.g., remeasurement gains and losses), and U.S. Tax Reform, and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis.
Funds which try to
hedge to a reference
currency can mitigate the direct
impact of
currency movements but can not completely isolate the indirect effects of foreign exchange movements
Either way, the
hedge will wipe out any
impact the
currency move would have had on your portfolio.
Similarly, disruptions to markets for credit default swaps, or even simple foreign
currency swaps, had a significant
impact on the operations of institutions that relied on these markets to
hedge their exposures and manage funding.
Examples of these risks, uncertainties and other factors include, but are not limited to the
impact of: adverse general economic and related factors, such as fluctuating or increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events
impacting the security of travel, such as terrorist acts, armed conflict and threats thereof, acts of piracy, and other international events; the risks and increased costs associated with operating internationally; our expansion into and investments in new markets; breaches in data security or other disturbances to our information technology and other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating costs; any impairment of our tradenames or goodwill; our
hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to service our existing debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our assets pledged as collateral under our existing debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign
currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management services to certain ships and certain other services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future increases in the price of, or major changes or reduction in, commercial airline services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and other factors set forth under «Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.
Currency impact can be managed by hedging local currencies back into U.S. dollar, allowing investors to potentially earn local market yields and take advantage of potential local bond price appreciation, with less currency fluct
Currency impact can be managed by
hedging local
currencies back into U.S. dollar, allowing investors to potentially earn local market yields and take advantage of potential local bond price appreciation, with less
currency fluct
currency fluctuations.
It also gave an outline of its foreign exchange risk management approach around
hedging for the next two years for both the US dollar and British pound, but in practical terms analysts believe the $ 2.3 million
impact is still around the mark when it comes to the US
currency shifts.
In the intro, I go into some pertinent publishing news: Kobo has become Tolino's tech partner, which makes it a much bigger player in the growing German ebook market; Amazon is opening a bookstore in New York City; while Barnes & Noble reported a 9 % decline in sales over the holiday period, there's discussion on the
impact of the All Romance Ebooks closure, and once again, I talk about the importance of multiple streams of income, as well as multi -
currency / multi-country income in order to weather the changes undoubtedly ahead and
hedge against potential economic changes.
The funds seek to
hedge against the negative
impact of
currency risk by taking short positions in
currency forward contracts.
Finally, the long - term strength in the dollar boosts the case for considering strategies that can help insulate an international equity portfolio from the
impact of weak foreign
currencies, such as
currency hedged exchanged traded funds (ETFs).
And in a broader environment where central banks globally continue to face the temptations of a race to debase,
currency hedging offers a way to limit the
impact of macro-economic policy missteps, too.
While there are no guarantees of course, over time we would expect the
currency impact on the long term returns of our Funds, whether
hedged or unhedged, to be de minimis, as it has proven to be in the past.
E.g. foreign country inflation is removed from foreign stock index returns in order to be able to claim that
currency exchange rates supposedly have no impact on returns (see Hedge Foreign Cu
currency exchange rates supposedly have no
impact on returns (see
Hedge Foreign
CurrencyCurrency).
The ETF
hedges its exposure to U.S. dollars to minimize the
impact of
currency fluctuations for Canadian investors.
With a
hedged ETF, the
currency equation is neutralized so the value of the portfolio is only
impacted by the performance of the individual holdings.
By
hedging, you are removing the
impact of
currency swings.
Alan highlights a new record for product launches and the loonie's
impact on non-
currency hedged and
currency hedged ETFs in his latest breakdown of ETF flows in Canada.
To avoid the
impact of
currency fluctuations, some investors choose to
hedge their
currency exposure.
- Passive
Hedging, where Record seeks to eliminate fully or partially the economic
impact of
currency movements on elements of clients» investment portfolios that are denominated in foreign
currencies;
To reduce or eliminate the
impact of changes in foreign exchange rates, ETFs that invest in non-Canadian assets are
currency hedged.
However, ETF investors looking to avoid the
impact of
currency fluctuations will benefit from ETFs that conveniently employ institutional
hedging techniques on a cost - effective basis.
And so, evaluating its current valuation / prospects, I'd put much less weight on its inability to overcome an implacable secular trend which continues to negatively
impact currency strategies, and put far more weight on its ability to grow passive
hedging revenue at consistent super-charged rates for almost a decade now.
How do we know dynamic
hedging &
currency for return fee rates / AUME declines won't continue to offset the
impact of passive
hedging AUME growth, thereby implying a static revenue & earnings trajectory?
The
impact of
currency hedging has investment implications beyond just returns and volatility.
Alan highlights a new record for product launches and the loonie's
impact on non-
currency hedged and
currency hedged...
Will prices quoted for support be
impacted by
currency fluctuations and
hedging requirements?