Liquidity management in the context of a currency overlay or hedge is an issue that periodically resurfaces, Investors with currency hedging programs are often confronted with positive or negative cash flows when currency forwards are rolled from one settlement date to the next  For most institutional investors who are typically near fully invested and hold minimal cash positive or negative cash flows the result of a realized gain or loss can pose a challenge The growing allocation to private assets…, bullet, forward approach (same settlement date and amount 3-month, laddered, forward approach (different settlement dates and amounts The payment sizes are significantly larger with the 3-month bullet forward than with the laddered strategy However payment frequency is higher with the laddered approach compared to the 3-month bullet forward Figure 1 | PAYMENT FREQUENCY AND SIZE OF 3M FORWARD CONTRACTS FOR A SAMPLE AUDUSD PORTFOLIO – HYPOTHETICAL This chart with…, Strategy, Objective, Disadvantages, Staggered (ladder settlement Smooth out cash flows Reduce liquidity pressure Lower payment size Frequent payments Roll contracts early Provides time to cover potential losses Provides liquidity The base currency appreciates post roll and potential offsetting gains are delayed HRR – Historical rate rollover Secure original contract rate Delay realization of gains or losses  Accumulating deferred…

Francois Teissonniere is Senior Managing Director in the Office of the Chairman and is responsible for the firm’s principal activities Francois brings more than 20 years of experience in investment banking He has advised or led complex public and private transactions including domestic and cross-border mergers acquisitions sales privatizations recapitalizations financings leveraged buy-outs spin-…

Freddie Trahanas is Associate Asset Management of Mesirow Alternative Credit  Prior to joining Mesirow Freddie served as an Analyst for Bastion Management where her responsibilities included portfolio monitoring and unit economic modeling Bastion joined Mesirow in December 2024 Before joining Bastion Freddie was an Analyst at Build America Mutual where she was responsible for underwriting new…

Excerpt of Money Manager Interview from The Wall Street Transcript Sector — General investing, TWST Please introduce Mesirow its history and your role there Mr Sydow, Mesirow is a financial services company that has been in business for 85 years We are headquartered in Chicago with 17 offices around the world We have a number of major businesses with about 500 employees and we’re entirely employee owned Some of Mesirow’s main businesses are investment banking capital markets structured finance sale/leaseback capital public finance and asset management — both…, TWST What type of client is best served at a boutique firm And why is Mesirow considered a boutique firm Mr Sydow, From the point of view of a client and specifically a client of our group we see the boutique as favorable in the sense that we are not encumbered by managing an overly large portfolio We own only about 100 bonds in our portfolio out of 2000 in the index — so we own 5% of the bonds in the high yield index while some of our very large competitors own hundreds of bonds 400 500 bonds We’ve seen a…

In the most unusual of years 2020 will be remembered in FX for the market implications related to COVID-19 Brexit and the US election A culmination of factors led to significant US dollar weakness calling into question the dominance of the US dollar and its status as the world’s reserve currency As the US dollar continues to weaken into the New Year the rising adoption of digital currencies in…

As  2020 advances amid the coronavirus epidemic the financial market reactions have reflected the magnitude of concern felt by the world on a global scale with currency risk weighing heavily on international investors Since our previous paper in late February risky assets have continued to be under pressure with peak-to-trough drops of -34% in both the S&P 500 and MSCI World thus far this…