FX TARNs (Target Accrual Redemption Notes) saw a reemergence of activity towards the end of 2012 and the beginning of 2013, with increased volumes in Europe, Asia, and the Middle East. Traded mostly by corporations and investors, they are often seen as a low cost enhanced hedge for currency exposures.
However, TARNs have been the topic of hot debate since the financial crisis. Viewed as a contributor to corporate bankruptcies and financial contagion in many emerging markets during the financial crisis, TARNs have a complex risk-reward profile that was poorly understood by – and inappropriate for – many buyers of the product pre-crisis. This leads to the question – should a company ever hedge FX rates using FX TARNs?
Join Numerix and partner Dion Global Solutions on Wednesday, March 6 th at 10:00 am EST as Udi Sela, 20-year FX veteran and Vice President of Client Solutions, , takes a deep dive into FX TARNs, to debate the role FX TARNs can play – or not – in FX hedging strategies.
Space is limited, reserve your seat today!
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