A Strategic Approach to FX Currency Hedging | Minds & Markets

About this episode

This episode discusses the challenges to traditional views of currency as a natural hedge and outlines a disciplined FX hedging framework for Canadian investors.

In this episode of Minds and Markets, Jafer Naqvi and Mathieu Côté discuss why traditional views of currency as a natural hedge are being challenged. They explain how foreign equity exposure creates currency risk for Canadian investors and outline the key factors - cost, volatility, correlation, and market regimes - that shape a disciplined FX hedging framework, including the role of dynamic hedging across market cycles.

People in this episode

Guests: Jafer Naqvi, Mathieu Côté

Topics covered

• FX currency hedging
• foreign equity exposure
• currency risk
• dynamic hedging
• market cycles

Keywords

• currency hedging
• foreign equity
• currency risk
• dynamic hedging
• market regimes

Mentioned in this episode

Organizations: TD Asset Management, TDAM, Ingrid Macintosh

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