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/biz/ - Business & Finance

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58037851 No.58037851 [Reply] [Original]

So here's the thing:
In 2030 my parents need to pay back a mortgage of the currently equivalent of 600k Euros in swiss francs. The way the bank set this up is so that they pay Euros on a "savings account" and whatever the exchange rate is at the end they'll have to pay overall (conversion at the end).
So if the Euro continues to fall against the franc the debt will increase further. The savings account already has 400k Euros in it.
Now my dad had the idea of converting the debt to Euros now because he thinks it's going to go down further (apparently this is possible from the contract). He should have known that from the beginning. That would effectively be the same as realizing the forex loss.
What do you experts think of this?
Personally I'd try to use long positions on the franc to hedge. Maybe you could even balance it off with some leveraged positions?
Thanks for reading my blog post.

>> No.58037876

>>58037851
why the fuck did your dad take a loan with underlying FX exposure? That's some degen shit

>> No.58037895

>>58037876
I guess the Jews in the bank suggested it. Can't change it now though.