John R. Rush

JOHN R. RUSH

International Financial Markets Consultant

The financial risk management papers noted below written by John R. Rush can be downloaded.

A paper on corporate financial risk management policy (37K). This paper was first published in Lawlink Volume 15 Issue 3, Auckland, December 2000.

"Doing nothing" IS doing something! If company directors and managers ever legitimately had the option of "doing nothing" about the management of their financial risks, those times are long gone - unless, of course, such individuals enjoy defending legal actions initiated by disgruntled shareholders. This paper discusses some of the fundamentals which companies ought to recognise and practise so as to avoid "ugly incidents" occasioned by deficient financial risk management.

A paper on the technicalities and potential financial risk management pitfalls of offshore borrowing (86K). This paper was first published in the New York publication International Treasurer.

The key to understanding borrowing in a non-base or foreign currency begins with the age-old premise that there are no free lunches.

A paper on pricing forward foreign exchange contracts (117K). This paper was first published in the New York publication International Treasurer.

Forwards have long been the workhorse of forex markets, but not everyone appreciates their pricing subtleties.

A case study Beware of Purchasers Who Offer Favours (1.3 MB) written for the APEC SME Crisis Management Center in Taipei published in that Center's Economic Crisis Monitor No 15 October 2011.

It may be far from optimal for an exporter to invoice in their base currency, being a strategy that has the appeal of avoiding currency risk. Based on an understanding of the analytical basis for pricing foreign exchange market transactions, an alternative counter-intuitive, commercially important invoicing choice becomes evident. Additional generalised foreign exchange pricing corollaries can then be formulated.