Currency Risk and Hedging in International Bonds

In this section

• Exchange Rates and Bond Returns
  Understand how currency movements alter the local and home-currency return of international bonds.
• Currency Hedging Techniques
  Compare the main instruments used to hedge foreign-currency exposure in bond portfolios.
  • Forward Contracts for Currency Hedging
    Review how forward contracts are used to lock in exchange rates for future cash flows.
  • Currency Swaps
    Understand how currency swaps exchange principal and interest streams across currencies.
  • Currency Options
    Learn how currency options provide asymmetric protection against unfavorable exchange-rate moves.