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Disney by justinbui85 is a document available to read on EtoBox.
The Walt Disney Company faced exchange rate risk from royalty receipts denominated in Japanese yen from Tokyo Disneyland. To hedge this risk, Goldman Sachs proposed issuing a 10-year ECU bond that Disney would swap into a yen liability via a currency swap with a French utility. This allowed Disney to borrow in yen at a lower rate than available alternatives while the French utility also obtained better terms, and Goldman Sachs earned fees as the swap intermediary. Disney ultimately implemented this strategy
- Author
- justinbui85
- Language
- EN