New York Mick Posted May 13, 2013 Share Posted May 13, 2013 What are the risks of getting a hedge loan and what kind of interest do they normally have? 8 mill at 5% Link to comment Share on other sites More sharing options...
Jetfire Posted May 15, 2013 Share Posted May 15, 2013 An example of a hedge would be if you owned a stock, then sold a futures contract stating that you will sell your stock at a set price, therefore avoiding market fluctuations. Investors use this strategy when they are unsure of what the market will do. A perfect hedge reduces your risk to nothing (except for the cost of the hedge). Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract. hese loans create a currency risk for the lender. For example, if a bank in the United States borrowed dollars and lent pesos to a Mexican firm, it might make money on the interest but lose money if the value of the peso dropped. To avoid this risk, these banks hedge their loans. The most common hedge is a currency swap, which is a promise to deliver a certain amount of a currency on a particular date, at a particular exchange rate. Banks will create a currency swap with another company that is either speculating on currencies or trying to hedge the opposite currency trade. This mitigates most currency risk . Link to comment Share on other sites More sharing options...
New York Mick Posted May 16, 2013 Author Share Posted May 16, 2013 Thanks. Great explanation Link to comment Share on other sites More sharing options...
Maxman Posted May 18, 2013 Share Posted May 18, 2013 What are the risks of getting a hedge loan and what kind of interest do they normally have? 8 mill at 5% What are you going to do with the money? Link to comment Share on other sites More sharing options...
New York Mick Posted May 19, 2013 Author Share Posted May 19, 2013 What are you going to do with the money? Stripclub Link to comment Share on other sites More sharing options...
Lil Bit Special Posted May 20, 2013 Share Posted May 20, 2013 Stripclub Oh... I thought you were borrowing money to buy a PSL. Link to comment Share on other sites More sharing options...
New York Mick Posted May 20, 2013 Author Share Posted May 20, 2013 Oh... I thought you were borrowing money to buy a PSL. I'm not sure if that would cover it. Link to comment Share on other sites More sharing options...
Maxman Posted May 20, 2013 Share Posted May 20, 2013 Stripclub I was hoping for something like that. I think you should always invest in a growth industry. Good luck. Link to comment Share on other sites More sharing options...
JustInFudge Posted May 20, 2013 Share Posted May 20, 2013 Stripclub Remember the time I left my card at your club when we were down their for the Jets game? I fell in love like 5 times that evening. Just remember the little people when you open this fine high class establishment. Link to comment Share on other sites More sharing options...
JerryK Posted May 20, 2013 Share Posted May 20, 2013 Never understood why strip club signs say "private viewing". Isn't that the point of a strip club? Link to comment Share on other sites More sharing options...
New York Mick Posted May 20, 2013 Author Share Posted May 20, 2013 Never understood why strip club signs say "private viewing". Isn't that the point of a strip club? A stripclub or a peep show? I've only seen private viewing signs in peep shows and porn stores. Link to comment Share on other sites More sharing options...
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