This Case is aboutÂ COSTS, CURRENCY, DECISION MAKING, FINANCIAL MARKETS, INTERNATIONAL BUSINESS. ORGANIZATIONAL STRUCTURE
PUBLICATION DATE: April 28, 1988 PRODUCT #: 288030-PDF-ENG
Gaz de France has a treasurer who is proactive and aggressive regarding the liability structure of his institution. He is running one of the biggest swap books of any non-financial corporation on the world. Interbank forwards currency futures and currency options are also often used to control the multi-money obligation structure of the business.
This case prompts students to learn more about the reasons and ramifications of competitive obligation management with special attention being paid to the administrative challenges created by this type of big swap situation. An important decision must be done forÂ the managing of theÂ issue of swapÂ in the decline of the franc against the German mark, the surface of the depreciating dollar as well as a potential realignment of the European Currency Unit. It is a case that include swaps, debt policy, and currency exposure which is best taught after students are taughtÂ these issues.