1. Recommend a currency risk-management strategy for two foreign exchange transactions pending in 2021. Explain your recommendations and support them with data analysis. Use the data in Tables 1 & 2. (12 marks)
2. The family has held US Treasury bonds since 2010, as a key element of the conservative part of the family’s global investment strategy and has a sizable holding worth approximately $25m in these assets., see Tables 3 & 4. Calculate the current value of this holding and discuss the risks associated with it. (24 marks)
3. The family has heard of the German Federal Government’s 2020 Green Federal Security initiative, and asks your opinion on whether the fixed income holding should be divided in two, and half of the fixed income portion of the wealth portfolio now invested in these new German bunds?
Analyse this investment proposition, make a recommendation to the family and explain your reasoning, supported by data analysis.
