Cross currency interest rate swap for investments

An FX hedge for an investment suits investors who want to have corporate bonds, equities, funds and other such instruments that involve an FX rate risk in their portfolios but who want to prevent the value of their portfolios from falling due to FX rate fluctuations.

Cross currency interest rate swap for investments Terms and conditions Cross currency interest rate swap for investments

How does an FX hedge for an investment work?

When the depreciation of a certain currency against the euro decreases the euro value of an investment denominated in a foreign currency, the value of the hedge will increase. You can hedge all investments denominated in foreign currencies or only a part of them.

Your benefits

  • An FX hedge helps limit or remove the FX rate risk involved in investments.
  • The hedge is separate from investments, so it can be made or cancelled any time.
  • The hedge will be tailored for each portfolio.
Terms and conditions

Terms and conditions

Purchasing the products requires a customer relationship and a general agreement on derivatives with Nordea. Please contact our specialists for further information. We will be happy to help.

Investment risk management

 

Clearer responsibilities and streamlined decision-making

A risk policy is a tool for setting targets and practices for market risk management.

 

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