Don’t mean to beat a dead horse, however looking for some clarity here.
I understand that for FI ccy hedging you have : fwd hedging, cross hedge, proxy hedge. However, in the ccy chapter you have : cross aka proxy hedge, mvhr, and macro hedge.
So, with all these essentially being related to hedging the underlying currency, how do you differentiate between their verbatim on the test? I assume it may give you a specific example - I.E. ‘you’re looking at hedging the exposure on your french bond’ or ‘you’re long eur and want to hedge your exposure’?
Thanks for taking the time.