Hannah McBeth

Through our work with businesses of all sizes, we’ve seen firsthand how unpredictable market shifts can impact cash flow and profitability. The following analysis of our 2024-2025 Economic Outlook Survey provides a closer look at challenges companies are facing, offering key takeaways that can help businesses refine their FX approach and make more informed decisions in a year increasingly expected to present challenges.

In this post by Andrew Shortreid, SVP Global Institutional Sales at Corpay Cross-Border Solutions, he details important steps portfolio managers, members of investment committees, and fund managers can take to create effective hedging policy and optimize FX risk mitigation over time. In this piece, you’ll hear from a seasoned expert, who has worked in challenging roles in the fund and institutional space across European markets.

An industry-leading international entertainment company with annual revenues of $900 million operates with a significant presence in over 20 countries, with the European group dealing with five currencies due to its inflows and outflows from operations. Despite their robust market position, the company struggled with managing currency fluctuations and forecasting cash flows accurately in their foreign exchange treasury operations. This difficulty impacted their ability to optimize cash flows across their international operations, which GPS helped address through cash flow hedging (CFH).

One of the world’s foremost firms in the Architecture, Engineering, and Construction industry partnered with GPS to clear a severe backlog of intercompany invoices and burgeoning FX risk exposure. Process improvements and analytics led to effectively mitigating FX exposure to optimal levels, leading to lasting satisfaction with GPS and the FXpert® platform.

A leading semiconductor manufacturer with annual revenues of $900 million and operations across 50 global entities faced substantial challenges in managing foreign exchange (FX) risk. With exposure to 12 different currencies, the company needed a sophisticated solution to stabilize their financial outcomes and optimize cash flows. GPS Capital Markets provided crucial expertise in Balance Sheet Hedging (BSH), leveraging their advanced FXpert platform to deliver a comprehensive strategy. By implementing tailored hedging solutions and automating complex processes, GPS Capital Markets helped the manufacturer mitigate currency risk, enhance financial predictability, and achieve robust financial stability.