FX Hedging for private debt funds  Real Estate   Private Equity   Social Housing   Project Finance   Infrastructure   Corp...
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FX Hedging for private debt funds  01  Contents Foreign exchange  FX  exposure  03 Currency impact on IRR  04 The forward ...
FX Hedging for private debt funds   Foreign exchange  FX  exposure  Foreign exchange  FX  exposure  At a basic level, any ...
FX Hedging for private debt funds   Currency impact on IRR  04  Currency impact on IRR Currency moves impact returns.  A s...
FX Hedging for private debt funds   Currency impact on IRR  Figure 1.1  Impact of FX movements on the IRR of a USD fund in...
FX Hedging for private debt funds   The forward curve  06  The forward curve  A currency with lower interest rates trades ...
07  FX Hedging for private debt funds   The forward curve  Table 2.1  The GBP EUR forward curve  Spot  1 month  3 months  ...
08  FX Hedging for private debt funds   Feeder funds and sub-classes  Feeder funds and sub-classes  A significant dollar i...
FX Hedging for private debt funds   Feeder funds and sub-classes   However, in the competition for investors    capital, o...
FX Hedging for private debt funds   Challenges posed by FX hedging programmes  10  Challenges posed by FX hedging programm...
FX Hedging for private debt funds   Challenges posed by FX hedging programmes  11  Breakage costs - early repayment If a s...
FX Hedging for private debt funds   Overlay strategies   regulation  12  Overlay strategies  One of the advantages of thes...
FX Hedging for private debt funds   Overlay strategies   regulation   Overlay strategies tend to underperform a normal for...
FX Hedging for private debt funds   Summary  Summary  01 02  The return levels of debt funds - typically lower than those ...
FX Hedging for private debt funds   Summary  03  As always with FX hedging, liquidity risk can lead to unwelcome cash dema...
FX Hedging for private debt funds   Appendix  16  Appendix I Strategies deployed to mitigate FX risk  In an ideal world, s...
17  FX Hedging for private debt funds   Appendix  Figure 4.1  Forward rate explanation AmountGBP x  1  rGBP  t X FGBPEUR  ...
FX Hedging for private debt funds   About JCRA  18  About the authors Jackie Bowie Group CEO Jackie.Bowie jcrauk.com Jacki...
Disclaimer J.C. Rathbone Associates Limited is authorised and regulated by the Financial Conduct Authority  FCA  in the Un...
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