• Working capital optimisation

    Optimal working capital can be achieved by maintaining efficient levels of current assets and liabilities through the establishment of an effective financial supply chain. This way a company can ensure that their cash flow is sufficient to meet their short-term debt obligations and operating expenses, a priority ever more crucial in today’s economic environment.

  • Corporate bonds

    Corporate bonds are becoming more widespread in China, allowing businesses to diversify their funding requirements. Issuing medium- or long-term debt on the capital markets offers several advantages, such as cheaper borrowing costs.

  • Corporate credit ratings

    A corporate credit rating is an important indicator of a business’s willingness – and ability – to pay its debts. It allows the corporate to tap capital markets for funding, and offers investors an independent, reliable assessment of whether the company is a suitable destination for investment.

  • FX risk – a global overview

    If a company has assets and liabilities denoted in a foreign currency, then it is exposed to variations in the value of that currency relative to others. In this article we look at the various types of FX risk and the methods to measure and mitigate it.

  • Currency pairs

    A currency pair is the means by which currencies are quoted for trading in the foreign exchange market. The first currency in the pair is known as the ‘base currency’ (or ‘primary currency’), and the second is known as the ‘quote currency’ (or ‘secondary currency’ or ‘counter currency’).

  • Corporate bonds

    Issuance of corporate bonds in China continues to grow. This article gives an overview of corporate bonds and discusses recent changes to the corporate bond market in China.

  • Basel III

    Basel III is the regulatory framework designed to strengthen the banking system in the wake of the recent financial crisis.

  • The carry trade

    The carry trade is a means by which a speculator ‘pairs’ two world currencies – one with a low interest rate, the other with a high interest rate – in order to make a profit on the exchange rate differential between the two.

  • Currency pairs

    A currency pair is the means by which currencies are quoted for trading in the foreign exchange market. The first currency in the pair is known as the ‘base currency’ (or ‘primary currency’), and the second is known as the ‘quote currency’ (or ‘secondary currency’ or ‘counter currency’). Currency pairs are denoted as follows:

  • Functional currency

    Functional currency refers to the currency of the primary economic environment in which a company operates and in which most, if not all, of its income and expenses are generated. A company’s functional currency is not necessarily the currency in which it presents its financial statements, which is known as the reporting or presentation currency.