[Verse 1] When you invest across the seas In bonds from foreign companies Two risks will follow you around Currency swings and interest sound The yen might fall, the euro rise While bond returns can surprise Your portfolio feels the shake From every move these markets make [Chorus] Foreign bonds need currency care Hedging shields you from the swear Cover, manage, calculate Don't let exchange rates seal your fate Foreign bonds need currency care Hedging shields you everywhere [Verse 2] A German bond pays five percent But euros drop, your gains are bent What seemed like profit turns to loss When currency becomes your cross The underlying bond stayed strong But foreign exchange proved you wrong Without protection from this risk Your returns become quite brisk [Chorus] Foreign bonds need currency care Hedging shields you from the swear Cover, manage, calculate Don't let exchange rates seal your fate Foreign bonds need currency care Hedging shields you everywhere [Bridge] Forward contracts lock the rate Currency futures don't make you wait Options give you choice to use Swaps can help you win not lose Hedge your risk or take the ride Let your strategy be your guide [Verse 3] Full hedge means currency's gone Your returns depend on bonds alone Partial hedge splits the game Some protection, some exchange gain No hedge means you take it all Both the glory and the fall Choose your path with careful thought Different risks and rewards are brought [Chorus] Foreign bonds need currency care Hedging shields you from the swear Cover, manage, calculate Don't let exchange rates seal your fate Foreign bonds need currency care Hedging shields you everywhere [Outro] International investing's smart Just protect your beating heart Hedge decisions shape your way In the global market play
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