
January 21, 2021
Talking Shop: Net Investment Hedging Programs
Member question: “Anyone have a net investment hedging program? If so, how often are you rolling hedges? “What is your typical tenor? Are you hedging 100% or something less?” Peer answer: “We have done some opportunistic NIH hedging in JPY with FX forwards. We generally use our EUR capacity for debt issuances as well. Hedges have been in the two- to three-year range. “We will go up to 100% of capacity (we do not seek to push to the 125%…