Fx-Hedging
Forward Exchange Rate Formula: A Forward Is Not a Forecast
How the forward exchange rate formula turns two interest rates into a forward, checked on B3 data for 2 October 2026: a 13% real yield, hedged into dollars, earns the dollar rate of about 6%. With a calculator of hedged and unhedged outcomes.
The Cost of FX Hedging: Rate Gap, Basis, Spread, Collateral
The cost of FX hedging reais into dollars is an interest-rate gap, not a bank fee. A cascade on B3 data from the 9.5-point policy gap to the 6.66% market price, the onshore dollar basis since 2006, real bank spreads, collateral, IOF and a calculator.
Non-Deliverable Forward, Futures, Options: Hedging the Real
A non-deliverable forward, B3 and CME futures, swaps and options all price the same rate gap. For the Brazilian real, access decides which one a structure can use, and margin decides how much cash it needs before the hedged asset pays. With a margin calculator.
Brazilian Real Carry Trade: 20 Years, Hedged and Unhedged
A 20-year backtest of the Brazilian real carry trade for a dollar investor in DI deposits: 5.4% a year unhedged against 3.1% hedged, a 45% drawdown that took until 2025 to recover, and an explorer of all 237 three-month windows since 2006.
Cross-Currency Hedge of the Real: Yuan, Rand, Rupee, Ruble
A cross-currency hedge of the Brazilian real into the yuan, rand, rupee or ruble runs through the dollar: two legs, two spreads, a price set by the rate gap. On B3 data the yuan costs 10% a year, the rand 4%, the ruble pays—and hedged yuan funding is not cheaper.