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Financial Sense

[1/5] Market Risk

Sections: [Market Risk] | Financial News | Equity Research | Web Insight | Seeking Alpha

Fair Disclosure | I do not professionally manage a portfolio or have a personal "real money" portfolio which contain these listed securities.

Tesla's Foreign Exchange, Interest Rate, and Credit Exposure

[1/2] Market Risk Disclosure (Item 3, Page 44) | As of 30 June 2018, Tesla’s largest foreign currency exposures were the Japanese yen, the Chinese yuan, and the Canadian Dollar. These exposures come about from Tesla’s overseas operations. In the first 6 months of 2018, Tesla lost $6.2 million net from foreign exchange currency exposure. Tesla estimates that adverse currency moves could affect their monetary assets and liabilities by $149.4 million.

Tesla is exposed to interest rate movements through floating debt instruments and uses derivatives to manage their risk. A 10% change in their interest rates would have increased their 30 June 2018 interest expense by $3.6 million.

[2/2] Outbound links: (1) Tesla’s Q2 SEC Filing (2) TLSA:NASDAQ

Schroders' Financial Risks

[1/3] Remuneration (Policy Implementation, Page 90) | Based on AUM composite, an index is constructed against which EPS performance is judged. This index is 50% bonds (Barclays Capital Global Aggregate) and 50% global equities (Morgan Stanley and FTSE indices).

[2/3] Financial Instrument Risk Management (Note 19, Page 121) | As a principle, the firm is exposed to Credit Risk, Liquidity Risk, and Market Risk. The group applies the three lines of defence model to risk management. Interest rate risk arising from the Wealth Management Division is managed within set limits by matching assets and liabilities and through the use of interest rate swaps. Sensitivity based and stress based models are used to model risk. Cash in other divisions is placed in short term government bonds. The group capital committee actively monitors the interest rate risk of the group's against limits. Loans, deposits, and some treasury activity within Wealth Management are undertaken in foreign currencies. These are managed by the treasury department within agreed limits. The group's policy in relation to revenue, expenditure, and capital in the Asset Management division is to not hedge currency exposure. Exposure is considered to be a normal part of the group's activities. The group has investments in non-Sterling currencies and the currency risk is managed through the use of forward foreign exchange contracts. The use of these instruments is subject to the approval of the GCC.

The group has a net foreign currency exposure on the date of filing of £1.211 billion divided into the Swiss franc £317m, U.S. Dollar £276m, Euro £199m, Singapore Dollar £136m, Chinese renminbi £90m, Hong Kong Dollar £64m, Australian Dollar £24m, Other Currencies £105m. The group hedged out £38m of foreign currency exposure.

Sensitivities to downside market risk, modelled as decreases in post-tax profit, are as follows: Decrease in interest rates by 50bps -£3m, Weakening of the U.S. Dollar against Sterling by 8% -£1m, Weakening of the Euro against Sterling by 6% -£4m, Decrease in the FTSE-All Share Index by 20% -14m.

[3/3] Outbound links: (1) Schroders Company House Filing 2017 (2) SDR:LON

[2/5] Financial News [Thur 18 Oct]

Sections: Market Risk | [Financial News] | Equity Research | Web Insight | Seeking Alpha

Introduction | Factual information has been obtained from sources believed to be reliable and is presented without warranty.

[1/7] Country, Stock Exchange

[2/7] Sector, Industry

[3/7] News Sentiment, Surprises

[4/7] Business

[5/7] Macroeconomics, Politics

[6/7] Equities

[7/7] Equity Markets

Outbound Links: (1) Financial Times, London HQ (2) Bloomberg, New York HQ (3) db power, Hong Kong HQ (4) Finanz und Wirtschaft, Zurich HQ
(5) GlobeNewswire, Los Angeles HQ (6) PR Newswire, New York HQ (7) Business Wire, San Francisco-New York Co-HQ

[3/5] Equity Research and Analysis

Sections: Market Risk | Financial News | [Equity Research] | Web Insight | Seeking Alpha

Sitemap Equity Analysis Graph Setup

[SEAGS] | Schroders Investor Relations, UK business, and US business sitemap.

[SEAGS] | Financials head to head: Lloyds Banking Group versus Prudential.

[SEAGS] | GM events and news, direct from source. NYSE listed with some NASDAQ relationship. View GM Sitemap.

Investor Relations Interface

[IRI] | Schroders has 28 pages on investor relations, almost 5000 on the US business, and over 6000 on the UK business.

[IRI] | United Airlines Investor Relations website is delivered through an unsecured connection HTTP United Airlines IR.

[IRI] | GM delivers investor page through secure HTTPS connection

[4/5] Web Insight

Sections: Market Risk | Financial News | Equity Research | [Web Insight] | Seeking Alpha

HTTPS Investor Relations Webpage Status

[HIRWS] | [1/2] [1] Deutsche Börse Group Investor Relations HTTP. [2] London Stock Exchange Group Investor Relations HTTPS.

[HIRWS] | [5/6] [1] Verizon Investor Relations HTTPS. [2] Comcast Investor Relations HTTPS. [3] 21st Century Fox Investor Relations HTTPS. [4] AT&T Investor Relations HTTPS. [5] NASDAQ Investor Relations HTTP. [6] Intercontinental Exchange Investor Relations HTTPS.

[5/5] Seeking Alpha

Sections: Market Risk | Financial News | Equity Research | Web Insight | [Seeking Alpha]

Seeking Alpha Profile

Equity Analysis & Alternative Data | [1/1] Follow me on Seeking Alpha Here for detailed novel equity analysis applying an alternative company dataset.

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