To hedge or not to hedge
It is really important to assess if a particular risk, interest rate risk, FX risk, commodities risk, or any other market risk should be hedged or not. The hedging depends on your own specific situation, risk appetite, market conditions, hedging costs, or other stakeholders view on hedging. We work with you to ensure that any hedging decision you take is optimal, and is aligned with your own objectives.
Hedging Alternatives
Once you have decided to hedge a certain market risk, there may be a number of hedging alternatives such as swaps, caps, or collars for interest rate hedging. We will work with you to ensure that an optimal hedging product or solution is chosen for your own specific situation.
Hedge or Derivatives Execution
It is important to execute hedges or derivatives optimally to ensure efficient and cost-effective execution. This is where it helps to make a suitable plan on potential timing of execution, number of hedging banks that the hedges or derivatives can be done with, hedge margins that may be negotiated or pre-agreed, methods of price benchmarking the hedges, documentation requirements, and any other issues that may be relevant.
A proper consideration of all the relevant issues makes the hedge execution optimal, and saves costs.
Contact Us
Tel: +44 (0) 20 3151 1241 Email: info@derivativesvalue.co.uk
Call us for more information or an appointment without any obligation on:
3rd Floor,
86-90 Paul Street,
London, EC2A 4NE
United Kingdom
Email:
info@derivativesvalue.co.uk