What are Currency Advisory Services?

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Companies face three main sources of currency exchange rate risk: commercial exchange, foreign currency denominated contracts and debt. Exchange rate risk is so prevalent in many businesses that these enterprises consider it a cost of doing business beyond their control. Where many see costs, TMS Brokers S.A. finds opportunities for savings and potential financial gain from prudent exchange rate risk management startegies. Through the skillful selection and employment of financial instruments, we not only protect clients from downside currency risk, but create the opportunity for incremental income.

Our Offering

TMS’ currency risk management advisory services successfully combines 15 years of hands-on experience, in-depth knowledge of financial instruments, strategic thinking and access to the most current market information. Be it a recommendation to execute a single one-off strategic hedge or implement a more complex hedging strategy over a period of time, the TMS Advisory team is dedicated to developing effective solutions.

Providing concise and transparent risk management guidelines, TMS’ analysis includes:

  • Daily, weekly, and monthly strategy recommendations
  • Long-term multiple-instrument strategies
  • Market leading exchange rate and interest rate forecasts
  • Morning and afternoon updates on currency markets and economic developments
  • Weekly market commentaries
  • Monthly market analysis
  • Trend analysis with forecasts for the Polish and global economy
  • Macroeconomic indicators and economic event commentaries
  • Tailored risk management strategies for currency and interest rate risk

Information sources that are not generally available to the public provide a high degree of value to our analyses. TMS’ historically close cooperation with news agencies, currency brokers and the leading domestic and foreign financial institutions provides our clients with timely access to key market data and information that might otherwise be unavailable.

Our clients belong to the most dynamically growing and well managed companies in Poland. Contracting for currency risk management services with TMS Brokers allows you to focus on your core business, while leveraging our expertise and market knowledge, to manage the currency risks inherent in your business. Your currency risk management advisory arrangement with TMS Brokers becomes part of your competitive advantage. Watch the video for sample opinions on TMS’ advisory services.

Rafał Żebrowski, Aroma Trend CFO

Aroma Trend – the owner of Soleo – the continentally renowned solarium cosmetics brand.

Our clients range from small enterprises to representatives of the biggest companies in Poland.

Our training program concentrates on strategies for effective investing.

Understanding the essentials of a financial instrument allows its practical application. We have to be certain that the solutions recommended are understood thoroughly by our clients and have an appropriate risk-return profile. We provide individual day-long training seminars in currency market mechanisms, which include time in our own dealing room. The instructional course provides financial personnel with knowledge of currency markets and – what is most important – the ability to efficiently employ financial instruments in currency risk management. We conduct advanced training seminars for our clients, as well as courses on the principles of hedging for all interested companies.

The Right Transaction at the Right Time

Even the most carefully planned strategy will not be successful unless implemented at the right time. TMS does not limit itself to identifying possible strategies for hedging exchange rate risk. Our advisors monitor client’s currency positions and unambiguously indicate the optimal times to execute hedge strategies. Operational cooperation requires the dynamic exchange of information with the client, which is made more efficient through technology.

Proper timing is one of the most challenging tasks in currency market risk management. Both fundamental and technical analysis is employed by our specialists. It is the latter that plays a predominant role in the volatile FX market. Our advisors share their extensive knowledge on chart analysis at seminars and various training forums, such as this podcast recorded with the Individual Investors’ Association.

Listen to highlights of TMS Brokers analysts’ speech delivered to the Individual Investor’s Association.

How to Reduce the Cost of Debt?

Currency loans are an important part of many Polish companies’ capital structure. However, borrowing in a foreign currency requires currency risk management skill. Because of large potential movements in exchange rates, foreign currency denominated loans can no longer be considered in terms of interest expense alone.

TMS Brokers offers professional credit portfolio management. Advice on financing decisions follows an in-depth analysis of currency and interest rates markets, as well as extensive review of the company’s financial position. Interest expense, exchange rate risk and existing currency exposures are important factors in choosing the optimal financing strategy. Long-term debt or a short-term current account loan? Zloty or foreign currency denomination? By answering these questions and recommending an appropriate hedging strategy, TMS Brokers analysts will reduce the cost and risk of financing.

TMS Advisory Strengths

Bank-independent and client-oriented approach Ability to tailor individual currency hedging strategies to client needs Cost-effective debt strategies Accurate recommendations and crisp analyses that facilitate decision making Extensive access to our TMS Brokers’ market specialists – advisors, dealers and analysts Educational programs for effective currency trading Practical knowledge in the use of financial instruments

Each client is supplied with a tailored currency and interest rate risk hedging strategy and we help identify the most beneficial times for its implementation.

What is Currency Hedging to TMS Brokers?

  • Identification of the sources of currency risk in a business
  • Accurate estimation of the risk exposure
  • Constant monitoring of currency risk positions
  • Identifying optimal times to implement a strategy or execute a transaction
  • Capital structure analysis and credit portfolio modeling
  • Dynamic management of hedge positions

Comprehensive Outcome Evaluation

The effects of our analysis and recommendations are assessed using criteria defined together with the client at the outset of our cooperation. The client’s objectives are applied to define performance metrics. As a rule, TMS’ approach focuses on securing an internal budgeting exchange rate that protects operating margins, SAD-defined customs exchange rate, or other accounting category. The results are presented to the client in the form of periodic reports.

Hedging – a way to Prosper or Prospective Bankruptcy?

The Puls Biznesu daily newspaper has along with TMS Brokers’ Corporate Advisory Department, published a book titled “Hedging – a way to prosper or prospective bankruptcy?” It is the first Polish professional hedging handbook. It is based on our analysis of 23 Polish companies, which did or did not hedge their currency risk during the crisis.

The book is authored by Artur Boczkowski. TMS Brokers, as an authority on theoretical aspects, wrote the summary of the author’s chapter.

Are you interested in Currency Risk Exposure Topics?

  • Follow 23 case studies, which illustrate both good and bad approaches to hedging
  • Get practical, hands-on experience, not just theory
  • Gain knowledge privy to professionals
  • See how much your company is in need of risk management
  • Expand your horizons with many interesting and practical advice on strategic and operational management, as well as market psychology
  • Get to know how to limit risk, not revenues -speculation does not need to be dangerous.