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  3. Investment / Securities

"exposition non-couverte"

English translation: non-hedged exposure

10:21 Nov 3, 2012
French to English translations [PRO]
Bus/Financial - Investment / Securities / Private placements
French term or phrase: "exposition non-couverte"
A vehicle is being created to invest in private placements. This is a contract setting out the conditions under which the parties involved are to cooperate to set up a portfolio for investment.

What I don't understand is why the party involved would want to have part of its exposure NOT hedged. Or have I completely misunderstood?

I have translated the term in the following section as "Exposure not Hedged by XXXX". Is that right?

- la confirmation annuelle que l’Exposition Non-Couverte de XXXX (telle que définie ci-dessous) est au moins égale à 5 pour cent du Montant Notionnel des Placements Privés (tel que défini ci-dessous) ;

(c) XXXX s’engage pour chaque Placement Privé sélectionné dans le Portefeuille et originé par XXXX et concernant chaque emprunteur, à (i) conserver une exposition non-couverte à la date d’émission et jusqu’à la maturité du Placement Privé (ci-après l’ « Exposition Non-Couverte de XXXX »), pour chaque Placement Privé, représentant au moins 5% du Montant Notionnel du Placement Privé, sauf en cas de cession de la quote-part du Placement Privé détenue par le Véhicule, et que (ii), à la date d’émission, l’Exposition Totale de Crédit de XXXX (telle que définie ci-dessous) avec une maturité supérieure à un an concernant cet emprunteur soit au moins égale à 15% du Montant Notionnel du Placement Privé.

Thanks in advance for any help, as always.

Mary
Mary Lalevee
United Kingdom
Local time: 02:39
English translation:non-hedged exposure
Explanation:
for example you may want to invest in US shares and not want to take a risk on the Euro-USD exchange
then you look for a fund that invest in us shares and is currency-hedged against fluctuations in the Euro-USD exchange

conversely you may want to also be exposed to the Euro-USD fluctuations because you expect the exchange to move favourably,
then you will look for a non-hedged fund

I do not know if this is your case, just an explanation why you may want not to hedge


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Note added at 12 hrs (2012-11-03 23:06:17 GMT)
--------------------------------------------------

Hi Mary,
although I am still not sure on how the "non-couverte" should be translated here is the reference regulation for the "risk retention" as it is called in the US or "retention of net economic interest" in the EU regulation

http://www.lexology.com/library/detail.aspx?g=bb4ea43f-effe-...

still not sure about the "not-couverte" as it could be referred to the "d" option in the regulation i.e. retention of the "equity" or "first loss" tranche or to the fact - as explained in the regulation the the "retained interest" cannot be hedged -
Selected response from:

CristianaC
United Kingdom
Local time: 02:39
Grading comment
In fact the financial rereader said this was fine. Thanks for all your help on this issue.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1non-hedged exposure
CristianaC


Discussion entries: 5





  

Answers


5 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
non-hedged exposure


Explanation:
for example you may want to invest in US shares and not want to take a risk on the Euro-USD exchange
then you look for a fund that invest in us shares and is currency-hedged against fluctuations in the Euro-USD exchange

conversely you may want to also be exposed to the Euro-USD fluctuations because you expect the exchange to move favourably,
then you will look for a non-hedged fund

I do not know if this is your case, just an explanation why you may want not to hedge


--------------------------------------------------
Note added at 12 hrs (2012-11-03 23:06:17 GMT)
--------------------------------------------------

Hi Mary,
although I am still not sure on how the "non-couverte" should be translated here is the reference regulation for the "risk retention" as it is called in the US or "retention of net economic interest" in the EU regulation

http://www.lexology.com/library/detail.aspx?g=bb4ea43f-effe-...

still not sure about the "not-couverte" as it could be referred to the "d" option in the regulation i.e. retention of the "equity" or "first loss" tranche or to the fact - as explained in the regulation the the "retained interest" cannot be hedged -

CristianaC
United Kingdom
Local time: 02:39
Specializes in field
Native speaker of: Native in ItalianItalian, Native in EnglishEnglish
PRO pts in category: 10
Grading comment
In fact the financial rereader said this was fine. Thanks for all your help on this issue.

Peer comments on this answer (and responses from the answerer)
agree  philgoddard: I'm not sure the reasons are important for translation purposes, but this is certainly how I'd translate it.
1 hr
  -> thank you Phil
neutral  Daryo: you would want to a have a maximum of hedged exposure, not a minimum of non-hedged exposure; doesn't sound right in this case
2 hrs
  -> fair enough, see additional note and reference regulation- thanks
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