project funding - hedging?, page-2

".I guess these are the ones you would be worried about GZ."

Nope.
The hedging sometimes insisted on by financial lending institutions are generally favorable only to them, and as mentioned are generally in $US. In times of economic volatility, The $US can also be volatile and subject to rapid reversals that could kill a company on whom it was thrust. Western Metals springs to mind.
See, the $US doesnt always move logically. Some time back, I aspired towards currency trading...till I saw the dangers and was advised against it by an experienced trader for a bank. And I had had visions that one couldnt lose, lol.
Remember when the US started going down the gurgler, and the $AuD rose to 94c? .....and parity with the $US....and beyond, was forecast by all? And then even worse news came out of the US and our $ fell and the $US rose. Our dollar dropped considerably. I rang my learned friend and asked how this could be...and he explained that in times of adversity, people still bail out of all currencies and go to the $US. My head still hurts from the logic involved there. And then our dollar, which had been tipped to fall even further, suddenly rose again, unpredictably .....
This sort of behaviour could kill a company in an unfavorable $US hedge position.....
Also, a feeling in my waterworks tells me the current downward trend of the US & our markets will be sustained for some time, with unemployment rising, mortgage foreclosures increasing, house prices falling, in the US.
There has been no recovery, really, and we are heading for the next level down.....just my feeling. Not a good time to be looking for finance,,,

re ".it will help GZ pass the time waiting (lol). "

Robo, nightly consumption of copious amounts of Scotch already does that, as I try to avoid the reality of the situation, lol.

GZ