One is that
it reduces currency risk: if your expenses are in Canadian dollars, it makes sense to hold most of your assets in the same currency.
The reason is that the exposure for a Canadian investor is not to one currency but to a basket of currencies, which
reduces currency risk substantially.
Our goal is to help our investors benefit from exposure to non-U.S. markets, while
reducing currency risk.
While hedging is usually designed to
reduce currency risk, CGL actually adds a layer of risk that wouldn't otherwise exist.
Finally issuance of bonds in local currencies can significantly
reduce currency risk and improve the ability of the borrower to fulfill the bond requirement.
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.
But without a consensus from the economic community, it would be unwise to
risk stamping out the economic recovery by sparking a trade war with China over
currency disputes or drastically
reducing the budget deficit.
These
risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the
risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or
reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the
risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign
currency exchange impact on Gilead's future revenues and pre-tax earnings; and other
risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
If you hedge half of your foreign holdings back into Canadian dollars, you can
reduce your
risk without making a specific bet on which way a
currency will go.
Such
risks and uncertainties include, but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health care providers; the impact of modifications to our operations and processes; our ability to identify potential strategic acquisitions or transactions and realize the expected benefits of such transactions, including with respect to the Merger; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations, actions and / or guaranty fund assessments; uncertainties surrounding participation in government - sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems; unfavorable industry, economic or political conditions, including foreign
currency movements; acts of war, terrorism, natural disasters or pandemics; our ability to obtain shareholder or regulatory approvals required for the Merger or the requirement to accept conditions that could
reduce the anticipated benefits of the Merger as a condition to obtaining regulatory approvals; a longer time than anticipated to consummate the proposed Merger; problems regarding the successful integration of the businesses of Express Scripts and Cigna; unexpected costs regarding the proposed Merger; diversion of management's attention from ongoing business operations and opportunities during the pendency of the Merger; potential litigation associated with the proposed Merger; the ability to retain key personnel; the availability of financing, including relating to the proposed Merger; effects on the businesses as a result of uncertainty surrounding the proposed Merger; as well as more specific
risks and uncertainties discussed in our most recent report on Form 10 - K and subsequent reports on Forms 10 - Q and 8 - K available on the Investor Relations section of www.cigna.com as well as on Express Scripts» most recent report on Form 10 - K and subsequent reports on Forms 10 - Q and 8 - K available on the Investor Relations section of www.express-scripts.com.
The floating
currency is helping to
reduce the disinflationary
risks that have come with the cut in our national income.
On other note, you can actually
reduce your
risks with cryptocurrency pairs as well, and get exposure only to the relative performance of two coins, and remove the generally huge volatility of coins versus fiat
currencies, like Ethereum's swings against the Dollar on the chart above
We regard digital
currency payments as «accepted» when one block confirmation has been registered, however, due to varying security between blockchains, we reserve the right to require additional block confirmations to
reduce risk of fraudulent double spending attempts or errors related to forks.
The iShares
Currency Hedged ETF's use of derivatives may
reduce the funds» returns and / or increase volatility and subject the funds to counterparty
risk, which is the
risk that the other party in the transaction will not fulfill its contractual obligation.
Lars Kroijer proposes on this site and elsewhere holding an amount of bonds and gilts in one's domestic
currency that is dependent on appetite for
risk as bonds and gilts
reduce the
risk.
Businesses all over the world try to
reduce risk that is connected with changes in
currency values, stock prices, and interest rates.
«Internationally, it is considered that the extension of AML / CTF regulation to include convertible digital
currency exchanges would encourage innovation and investment by ensuring service providers have greater certainty and security in their dealings with digital
currency businesses, while
reducing the money laundering and terrorism financing
risks associated with this emerging technology.»
Our analysis shows that gold can be a cost effective EM -
currency hedge, helping investors
reduce portfolio losses during periods of heightened
risk.
The
currency remains inside the rising trend, but the
risks of a correction are rising, and in the case of a break - out, traders should rather
reduce their positions than open new ones.
This will allow you to make and receive payments in the same
currency,
reducing the
risks of paying poor foreign exchange rates.
However, inherent
risks such as contingent liability (where your liability may be greater than the initial purchase price of the investment), margining requirements (where you are required to make a series of payments against the purchase price, depending on whether the underlying investment or index is moving in your favour) and international exchanges (which can mean a
reduced level of investor protection, as well as
currency fluctuation if the investment is not traded in sterling) meant these were out of reach.
The iShares
Currency Hedged Funds» use of derivatives may
reduce the Funds» returns and / or increase volatility and subject the Funds to counterparty
risk, which is the
risk that the other party in the transaction will not fulfill its contractual obligation.
Schroder Multi-Asset Total Return Fund invests in a broad range of asset types, which can help to generate positive returns or
reduce risk at different times.These include assets that are familiar to most, such as equities and bonds, along with assets in more specialist investment areas such as
currencies and commodities.
Unless foreign
currency positions constitute more than roughly one - quarter of portfolio assets,
currency exposure serves to
reduce the overall portfolio
risk.
Investing in
currencies can
reduce the overall
risk profile of your portfolio, as
currencies have different and less volatile returns than stocks and bonds.
There are ways individual investors can hedge
currency risk to
reduce exposure to swings in foreign exchange rates, such as through a
currency - hedged exchange traded fund.
Let me state that again: the
currency hedge is NOT active management — it is pure
risk management (you are
reducing the beta of the portfolio for a Canadian investor).
We find that Canadian investors benefit from retaining
currency risk in international equities, as foreign
currency acts a natural diversifier that can
reduce overall volatility
According to Claymore's website, the ETF adds
currency hedging «to
reduce the direct exposure to non-Canadian dollar
currency risk for unitholders of such fund.»
Reduce the international allocation as retirement nears to cut back on
currency risk somewhat.
These
risks can include political or economical instability, changing
currency rates, foreign taxes,
reduced liquidity (difficulty selling securities held by a fund) and different regulatory or financial accounting standards.
These funds attempt to
reduce systematic
risk created by factors such as exposure to particular sectors, market - cap ranges, investment styles,
currencies, or countries.
These
risks can include political or economic instability, changing
currency rates, foreign taxes,
reduced liquidity (difficulty selling securities held by a fund) and different regulatory or financial accounting standards.
You also need to diversify your holdings within those asset classes and hold, in the case of a stock portfolio, a variety of stocks — from risky to less risky, in different
currencies, in different industries — to
reduce your
risk exposure.
Learn how
currency hedging can help
reduce exchange rate
risk for a portfolio of foreign stocks.
If these
risks are not properly managed, the value of your investment may be
reduced by adverse changes in foreign
currency exchange rates and interest rates.
Be aware that when you invest in international markets you have the added
risk that changes in
currency exchange rates can increase or
reduce your investment returns.
Some funds may be «
currency hedged» to
reduce this
risk.
A strategy that offers the most useful information on when to enter or exit a trade is crucial for just about anyone in the
currency market, thereby
reducing the
risks associated with entering the market wrongly.
Ariel uses these techniques in an attempt to decrease the strategy's exposure to changing security prices or foreign
currency risk, or to
reduce unintended tracking error versus its respective benchmarks, or to address other factors that affect security values.
The portfolio volatility could be further
reduced by
currency hedging, which historically has resulted in a better
risk - adjusted return profile.
Although sovereign debt will always involve default
risk, lending money to a national government in the country's own
currency is referred to as a
risk - free investment because with limits, the debt can be repaid by the borrowing government by raising their taxes,
reducing spending, or simply printing more money.
In particular, LexisNexis ®
Risk Solutions has high - lighted five key revisions to the current legislation that banks and other financial institutions must be aware of to remain compliant in their anti-money launder - ing provisions: • Pre-paid cash cards: to
reduce financial crimes linked to anonymous pre - paid instruments, vendors will be required to conduct more stringent customer verification and the thresh - old will be
reduced from $ 250 to $ 150 • Digital
currencies: thorough customer due diligence controls will be required by all virtual cur - ing farmers, are vulnerable to unfair trading practices employed by partners in the chain.
To
reduce risk, the city instantly changes bitcoin into Swiss
currency.
The Bank of England and others are already exploring blockchain - enabled fiat
currencies to
reduce friction, cost, and
risk, increase transparency and accountability, and improve oversight of the financial system.
The company's forthcoming products, which entered limited availability release today, promise to allow consumers and businesses to use digital
currency easily,
reducing much of the friction and
risk that is currently associated with Bitcoin.
Officials are also looking at ways to
reduce risks associated with cryptocurrency trading in the country, which could include shutting down institutions that use such
currencies, Choi said.
As bitcoin's value continues to fluctuate, how will investors
reduce risk exposure to the
currency's volatility?
This is so neither the customer or Stripe has to hold on to the virtual
currency, which will allow both parties to
reduce the
risk of price volatility.