Treasury & Derivatives
Utilising the wide ranging skills of a highly experienced team of corporate treasury, banking and advisory practitioners, we are able to support and guide clients through all areas of treasury and derivatives. From the big picture of treasury strategies to the fine detail of risk management through treasury management policies, we work with clients to understand their specific corporate objectives and requirements before applying our knowledge and breadth in delivering creative and robust solutions to a key area of risk and opportunity for their businesses. By accessing our systems infrastructure and team of quantitative analysts, clients can unlock areas of complexity around valuations, portfolio modelling and risk management across a range of financial products, before executing their preferred strategies through robust and well-practiced processes in order to ensure that their value is maximised.
Utilising our experienced derivatives advisory professionals and sophisticated pricing platform Centrus provides hedging advisory services and supports clients with the selection and implementation of optimal hedging strategies.
Our derivatives team is able to perform risk analysis, using leading edge techniques under different market environments in order to evaluate the risk profile as well as assessing the impact of market movements (interest rates, inflation, commodity, foreign exchange etc.) on the financial performance of the business. Using this framework, we can test different hedging strategies and combinations of strategies in order to measure the impact of each on the reduction of the risk for which mitigation is sought. In addition to risk reduction we measure the cost of implementing each hedging strategy as a means of measuring the risk-reward dynamics of alternative strategies.
We take into account clients’ risk tolerance as well as hedging cost, documentation, market liquidity, accounting and other constraints before the filtering and recommendation of optimal hedging strategies which meet these specific requirements. As a result of our holistic approach across debt and derivatives advisory, we are frequently involved in financing strategies and implementations and are therefore able to link hedging and financing strategy in a coherent manner. This extends to documentation where we ensure that financing documents (facility, inter creditor agreement etc.) and hedging documentation (ISDA, CSA etc.) are designed in order to achieve the necessary consistency, together with flexibility and the ability to generate competition wherever possible.
Our approach is to support internal discussions, authorisations and decision making processes and to produce associated papers and presentations wherever required. We also bring significant experience to the process of implementing chosen hedging strategies by structuring the hedging, drafting term sheets coordinating with hedge counterparties and pricing and execution.