BCR Publishing
We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.
Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.
BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.
To Hedge or not to hedge – The Natural hedge myth
| 30-11-2020 | Bas Meijer |
Corporate firms have the primary objective to be profitable. From a Treasury perspective, the main goal is to increase cash and add value. Nowadays, an increasing amount of Corporate firms engage in international business. Therefore these firms can be exposed to unrelated business exposure, such as interest rates, FX and commodities pricing depending on the business model pursued.
How do you deal with potential orders with these kind of exposure? I have seen companies going bankrupt because they did not (fully) hedge their potential orders and applied the wrong instruments.
Exposure differentiation
In order to hedge, the distinction must be made between the type of exposure:
Both types of exposures need different products to be eliminated. Do all exposures need to be hedged? No. Transactional exposures should be fully hedged. Internal loans or hidden equity not always. In general, equity is not hedged. Internal loans depends in the way these are structured. In which currency is the loan granted, what are the cash flows etc. This is tailor made.
Natural Hedge & Holistic Hedges
The Natural hedge myths: there is only a natural hedge if the cash-in and cash-out are in similar currency and at approximately the same time, and applicable to transaction exposure only. This means that there is hardly any natural hedge.
Finally the holistic approach: some providers are selling holistic hedges. In general these are based on statistical studies. Holistic hedge approach adds uncorrelated exposure to the corporates, with the goal to lower the total exposure. In the world of statistics there is always room for error. When using this approach, the corporate firms should be aware of this. Not only the board, but also the auditors. I have seen enormous errors on this approach, resulting in not eliminating the risk but increasing the risk.
Cost of hedging
Is hedging expensive? No. There are many different ways to hedge the exposures, and there are many different providers to do this. Some of these are too expensive. Use a Treasury Specialist to analyse the cost of hedging and come up with alternatives. The Treasury Specialist has a high rate of return and attributes to the bottom for years to come.
More important is to quantify your exposures. The exposures are not limited to the cash flow only, but can also be embedded in your processes. Using a Treasury Specialist will lower your cost of hedging, assures that your organisation hedges the correct exposure with the right instruments, can massively attributes to the bottom line and protect you of becoming tomorrow’s news.
Thanks for reading, comments are welcome!
Bas Meijer
Treasury Specialist
Looking for a Junior Payments Officer – Russian Speaker (m/f)
27-11-2020 | Treasurer Search | treasuryXL
Help build the treasury and finance function of the Amsterdam satellite office of a prominent Russian trade organisation.
Tasks Payments Officer
Ideal Payments Officer
This is a first or second career step of an Amsterdam (region) based Russian speaker with a foundation in finance. All these aspects are must-haves. Experience with banking, SAP and accounting processes are considered a nice-to-have.
Our Client
Our client is very prominent in Russia. Her Amsterdam offices helps in connecting to the rest of the world.
Remuneration and Process
The expected base salary for this position is €40K. For candidates that qualify and are interested, further information is available.
Contact person
Kim Vercoulen
APPLY HERE
TRAINING: PSD2 & Open banking: impact on the financial ecosystem and new challenges
| 23-11-2020 | Francois De Witte
On December 16th, our Expert Francois de Witte will present a Webinar in collaboration with Febelfin-Academy, regarding PSD2 & Open banking: impact on the financial ecosystem and new challenges.
This training program prepares participants for 2 major challenges of the upcoming years in banking: PSD2 & Open Banking. This will have a major impact on the financial ecosystem and will create new challenges.
The goal of this training course is to:
Target Audience
This training course can be followed by multiple target groups:
Prior Knowledge
Advanced: offers practice-based applications to complement the theoretical knowledge already acquired through the “basic level” courses (in-depth learning).
There is no specific preparation required. For persons who are less acquainted with PSD2 and payments, some pre-course reading material can be made available.”
Program
This training program prepares participants for two key challenges of the upcoming years in banking: PSD2 and Open Banking.
Part I: PSD2 and Open Banking – overview:
Part II: Open banking architecture: Implications for banks and the New Players
Part 3: PSD2: Potential impact on the market and next steps
Practical information
Duration: One day training
Date: December 16, 2020
Hours: 9AM-5PM (6 training hours)
Location: This training will be given online
Additional information: This training course will be given in English
Pricing: Members (€510), Non-Members (€610), Partner BZB (€510)
REGISTER HERE