Opinion on Cross Currency SwapAug 15: Cross Currency Swap: 382MM -> 297MM GBP
New Swap: 350MM -> 286MM GBP
They've hedged their entire GBP earnings amounts at 1.255 GBP/USD. Now lets look at the macro environment:
- Rising US Rates = Strengthing Dollar
- Brexit = Weakening Sterling
- Brexit Uncertainty = 5 Years
Is this a good move? Time will tell - I agree with Craigbad and others that they should've been proactive instead of reactive. (a little late). Although weighing against the macro environment this is a short term positive.
I sense new management coming in - still no position until after earnings (i might miss a pop or be lucky).