Benchmarking & Execution

Whether hedging of risk is undertaken in respect of currencies, inflation, interest rates or commodities, it is an area of considerable complexity and opacity even for relatively experienced treasury professionals. The value which can be gained or lost by organisations through execution of hedging strategies is therefore large and although banks are now required to offer their counterparties greater levels of transparency around various charges than was the case previously, this has introduced another area of complexity for companies to contend with when undertaking hedging.

With a highly experienced team of derivatives professionals, we can support clients in navigating this complexity and setting up processes (including detailed negotiations and dry runs) in order to ensure that transactions can be transparently executed and competed in a way which offers complete transparency to the client and an assurance that value for money is being delivered. As well as understanding how to run effective processes and how to deal with bank counterparties, we have access to all of the relevant market data as well as some of the leading derivatives pricing systems in the market which allows us to accurately price even the most complex structures.

Our approach is to coordinate with banks to discuss the execution strategy and liquidity management plan and we typically perform several dry run processes in order to identify any pricing and capacity sensitivities or discrepancies. We support clients through a complex process by drafting hedging term sheets and execution protocols having regard for both market risk and credit risk. We will also support with post transaction activity such as transaction reports, confirmation review and regulatory compliance.

As a result of our holistic offering across debt and derivatives advisory, we are able to ensure a properly joined up approach throughout the life of a funding project which will ensure that hedging costs form an integral part of the qualitative evaluation of overall offers of funding from different parties, as opposed to treating hedging relating to a wider financing transaction as a separate issue.

Service Contacts

Jason Murphy

Jason Murphy

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George Karalis

George Karalis

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