All material subject to strictly enforced copyright laws. © 2022 Euromoney Institutional Investor PLC group
Derivatives

Swiss Travel Co. Plans Fx Hedge

Kuoni Travel, a Swiss travel company, is planning to buy dollar calls/Swiss franc puts and sell dollar puts/Swissie calls if the dollar depreciates against the Swiss franc by 1-2%. The company has already carried out a similar transaction in which it bought euro calls/Swiss franc puts and sold euro puts/Swissie calls. Markus Bieri, head of the treasury competence center in Zurich, said the firm would enter the transaction to hedge predicted further strengthening of the dollar and euro against the Swiss franc next year.

Bieri said the firm hedges around 20% of its exposure.

Pricing will be the most important factor in selecting counterparties.

Kuoni has transactional currency exposure since it receives Swiss francs for the holidays it sells but its costs are in dollars and euros.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree