Oral presentation for our previous corporated work
Presentation Draft on Risk Financing and Treasury Management—Walt Disney Company
Understanding a Currency Swap
The first concept the essay focused on was the comprehensive definition of a currency swap. Pegged within a case study of Walt Disney Company, this section has defined and underscored the concept giving examples from different scholarly materials. Also important in understanding of currency swap is the currency swap maturities which remains negotiable but should be at least 10 years.
Cash Flows Swapped in Currency Swap
The essay found, based on contemporary researches and what major companies current swap that cash flows that can be swapped include:
Fixed-rate loan in exchange for payments from a floating rate loan
Foreign currency exchange rates
Interest rates and
Walt Disney Company Currency Swap
The swap can be understood from its Yen financing. Before making decisions regarding the swaps, the company engaged in quotes for a period of 10 years on long-dated forward contracts.
However, the process of doing, one notable concern was that Company’s high debt ratio, long period Eurodollar debt swapped into JPY was automatically not considered as an option.
Were all of the Disney Risks Eliminated by the Swap
The assessment ascertained that not all of the Company’s risks were eliminated by the process of swap. We found that not all the risks were eliminated. This was because Disney was clearly over dependent on the cash flows coming from Tokyo Disney land to finance its other projects meaning that the company was risking some shortfalls from their expected values.