Vedanta Hedging is an independent firm of corporate treasury consultants, providing impartial advice on Hedging and practical support to businesses. We also work with Corporate Finance houses, PE Firms, Accountants and Solicitors to work with their clients.
We help finance teams to assess and manage financial risks, particularly Interest Rate risk and Foreign Exchange risk. This is an aspect of the Client – Bank relationship which is often the most heavily weighted against the Client, from an information, pricing and clarity perspective.
As a niche risk management consulting firm, our philosophy is to add transparency to the financial risk management ‘hedging’ process and offer impartial advice on hedging.
Vedanta Hedging is completely independent from any Bank or Commercial Finance Broker, ensuring completely un-biased services.
Crucially, we have no vested interest in which hedging option you choose (unlike Banks) since our fee structure is hourly or fixed fee based.
One of the key reasons for setting up this business was our observation that Banks were trying to sell more complex products with less transparent profit levels. This has been exacerbated since 2008, because the Banks cannot generate as much profit on their traditional lending. We felt there was a real need for another view to be provided to MD’s and FD’s, wholly separate from their Banking relationship
To help our clients prosper and achieve their aspirations, through our provision of leading independent and transparent advice.
Vedanta’s team has direct, practical experience in the financial markets (FX, Interest Rates and Commodities) from working at Banks. This allows us to deal effectively with Bankers, since we understand their background and motivations in how they deal with firms.
The pricing of hedging instruments is not transparent and a key part of the service that we provide is to negotiate with the banks in order to reduce the ‘hidden’ margins charged on hedging instruments. Using the same market data-driven pricing models as the Banks, the client can then be reassured that they have achieved a fair price for their hedge. This is a continual process, to ensure that Bank’s do not try to covertly increase their margins again over time, or in future transactions / restructures.
Banks will often encourage certain hedging options to be chosen over others, since the Bank is able to make greater profit margins (again ‘hidden’ from the client) on more complex and un-transparent hedging options. Vedanta Hedging can provide independent impartial advice on the various hedging options shown by the Bank, so that a more optimal (and cheaper) risk management strategy can be chosen. We can also suggest other more suitable products that may be more beneficial to the client.
The client can then be reassured that they have received impartial advice and chosen (and understood) the most appropriate hedging protection product for them, and that this has been agreed with the Bank at a fair and competitive, transparent price.