magnetite, page-59

alfien

What you have not considered is that currently the loans have not been hedged, which I think is rather odd considering the forward expectations for the AUD/USD. I have asked the question of (Michael Weir) management about their intentions and I have not received a response. I would at least have received the standard IO priced in USD and loan priced in USD so natural hedge, but not even that.

So unless they hedge only the loan then no benefit derived, and potentially a big risk with regards to repayment of the loans.