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Money market hedging

Forums › Ask CIMA Tutor Forums › Ask CIMA P3 Tutor Forums › Money market hedging

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.
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  • March 19, 2019 at 4:34 pm #509717
    dsodha
    Participant
    • Topics: 18
    • Replies: 13
    • ☆

    How does a money market hedge offer flexibility when for instance a customer delays payment. Because once you borrow now you are bound to pay back at the time that you receive the payment.

    March 21, 2019 at 5:40 pm #509986
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10606
    • ☆☆☆☆☆

    It doesn’t, except you might be able to renegotiate the repayment with the bank.

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