Additional risk services
As well as offering foreign exchange, interest rate, inflation and commodity strategies, we can also provide you with a number of additional risk-management-related services.
If you’re employing hedging strategies using derivatives, options and other such products – be it for foreign exchange, interest rate or other reasons – we can help your business. We can also help provide guidance on a range of international accounting standards, including IAS 39.
The key to an optimal hedging strategy lies in the ability to understand and precisely quantify the risks to which the business is exposed. We have a dedicated team of risk solutions experts who can apply sophisticated risk quantification methodologies and provide risk analysis tools that can be used to inform your hedging strategies.
If your company has an exposure to foreign exchange, interest rates, inflation or commodities, we can help you quantify the associated risks. If you have exposure to a number of these risks, quantifying them will enable you to look across your hedging strategies and develop a holistic solution. Advanced risk management solutions and increasingly sophisticated approaches to hedging strategies allow businesses to handle risk exposures. Through appropriate risk quantification, we can help you devise a strategy that minimises the risk while also minimising the cost.
Market timing indicators
Treasurers don’t always have access to the level of insight and information that could be instrumental in determining and executing hedging strategies. For example, the factors you may be considering in order to create the optimal strategic debt profile include income cyclicality, volatility, gearing, cash balance, foreign currency exposure, financing structure, cost of funding, interest rate volatility, ratings, risk appetite and debt covenants, to list but a few.
However, once you’ve converged onto a strategic benchmark, you should look at the market and factor in the tactical considerations. Our risk solutions group has devised a set of tactical indicators for both currencies and interest rates. These are accessible, meaningful and transparent with the aim of assisting and informing you on the timing of your risk management decisions. The indicators answer questions such as:
- when is a good time to hedge?
- where is the best value located in terms of instrument, tenor and currency?
- how to enhance returns while mitigating risks.
Our sophisticated analytical tools can help augment your existing research and ensure your hedging strategies are as robust and effective as possible.
All applications for our products and services are subject to eligibility criteria.