hedging – Page 4 – Twenty Third Floor

Category: hedging

Actuarial and Risk, book reviews, business tools, creating value, economics, financial risk, hedging, insight, insurance, managing uncertainty, measurement, operational risk, statistics

Fooled by the Black Swan

30 July 2007

David Kirk

Is your organisation one black swan away from disaster? Are you taking hidden risks in the quest for success, and using hope as your only risk management tool? Nassim Taleb’s books should be required reading for life Nassim Taleb is one of my new favourite authors. I’m actually a little slow on the uptake here…
Read more: Fooled by the Black Swan
economics, financial risk, hedging, managing uncertainty

Unreal currency risks in Zimbabwe… and how to manage currency risk if you still can.

27 June 2007

David Kirk

Zimbabwe’s economic problems have been long related to inflation and the exchange rate. While it is difficult to determine the extent to which the one leads the other in this case, it is clear that both the volatility and dramatic change in prices and exchange rates are the results of a real economic meltdown. Risk…
Read more: Unreal currency risks in Zimbabwe… and how to manage currency risk if you still can.
economics, financial risk, hedging

Mbeki points to rand volatility for hurting exports

9 February 2007

David Kirk

President Thabo Mbeki made reference to the adverse affect that volatility of the South African Rand has had on South Africa’s export manufacturers. I’ve posted quite a bit about hedging recently, but it seems that the issues just won’t go away. Volatility hurts planning capabilities. Hedging can restrict the impact of volatility for certain durations.…
Read more: Mbeki points to rand volatility for hurting exports
economics, financial risk, hedging, operational risk

South African Airlines and hedging

5 February 2007

David Kirk

Moneyweb falls into the same trap that many others have stumbled over time and again. David Carte mis-titles SAA loses as oil price falls and makes the mistake worse with the subtitle “A hedge goes the wrong way”. Mr Carte doesn’t belabour the point in the article, but his perspective on hedging is clear. I’ll…
Read more: South African Airlines and hedging
capital structure, economics, financial risk, hedging, optimisation

Follow up on gold hedging: Western Areas, South Deep and GoldFields

4 February 2007

David Kirk

Gold Fields purchased Western Areas (through a share swap) and thus inherited the notoriously “toxic” hedge-book of Western Areas. This event is worth considering in the light of my previous blog on hedging. Let’s apply some analysis and critical thinking here. First, some real-world imperfections. The hedge book was created in the time of the…
Read more: Follow up on gold hedging: Western Areas, South Deep and GoldFields
financial risk, hedging, optimisation

Over the Hedge and Underground

4 October 2006

David Kirk

When should companies hedge their exposure to financial and commodity risks? Is it always wrong or always right or somewhere in between? This topic arises every now and again when a goldmine is found to have made losses (and we’ll distinguish shortly between different types of “losses”) as a result of gold price increases when…
Read more: Over the Hedge and Underground

Twenty Third Floor

Figuring out the future and the now

Category: hedging

Fooled by the Black Swan

Unreal currency risks in Zimbabwe… and how to manage currency risk if you still can.

Mbeki points to rand volatility for hurting exports

South African Airlines and hedging

Follow up on gold hedging: Western Areas, South Deep and GoldFields

Over the Hedge and Underground

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