Pemex harnesses the Seagull, using options hedging strategy
Mexican oil major Pemex has changed the way that it hedges some of its foreign debt liabilities, deploying options instead of cross-currency swaps, a strategy that incoming accounting standards could open up to more corporates.
Corporations that issue debt in foreign currency markets have long relied on the vanilla cross-currency swap market to hedge those liabilities’ FX exposure. Pemex is no exception and the state-owned oil company still uses the instrument when hedging its dollar debt exposures.
But under the leadership of CFO
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