M&A mania: deal-contingents re-emerge but risks remain

Price of forex hedges plummets as dealers flock to offer high risk, high reward product


Mergers and acquisitions (M&A) have long been a money-spinning business for investment banks, generating millions of dollars in fee revenue per deal. Now, banks' trading businesses want a slice of the action.

In the past two years, an M&A boom has seen dealers flock to offer so-called deal-contingent foreign exchange hedges to companies making cross-border takeovers. These allow the purchaser to hedge the forex rate on the transaction, but if the deal fails, the forward is extinguished and the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here