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How can you use derivatives to mitigate financial risks?
We offer integrated and tailored risk management services. Our risk control philosophy requires us to know our clients’ needs and constraints intimately before making any hedging decision. We quantify and identify risks before making decisions and then follow up on those decisions rigorously and transparently.
Our offer includes both derivatives and solutions in the form of management mandates.
As an illustration, and in contrast to the many local government bodies that have been offered complex borrowing structures in the last five years, we offer to use derivatives merely to mitigate financial risks, with a constant eye on risk control. Some structures offer an attractive fixed rate initially, and then a floating rate indexed to speculative values. Rates are attractive in the first few years, but these structures also imply an unlimited long-term speculative risk that must be taken into account and managed.
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