Vedanta Hedging is an expert in our field. In our experience from working directly in Banks, the decision to Hedge can sometimes be taken without sufficient analysis. Due to the complexity of some of the products, there is often a gap in the understanding of how these work.
This can have serious consequences for a business, as choosing the wrong type of hedging solution can introduce further risk and volatility into the business – precisely what the hedging is supposed to help in the first place!
Explain what financial risks the client potentially faces and help them to understand in unambiguous terms, the hedging options provided to the client by the Bank.
Vedanta will explain the hedging options in the context of the 3 simple ‘levers’ that can be employed with derivatives:
Assess impartially what the real benefits and risks of these various strategies are, and the impact they can have on the business.
Work with the client to suggest alternative hedging strategies that may be more appropriate than just what the bank are offering.
Assist the client through the documentation process to satisfy FCA and banking requirements.
Help the client to understand and manage the ‘dealing process’ which is very different to a normal banking transaction.
Negotiate with the Banks to give the client much more transparent and fair pricing.
Independent advice and valuation on existing hedges and also suggest restructures that may be beneficial at the appropriate time.
Hedging is a continual, iterative process, and must be regularly reviewed and managed. Even if the business requirements do not change materially, the Global Financial Markets are constantly changing, which can have implications for the hedges.
Call us today on 020 7183 2277 or click the button below to contact Vedanta Hedging.
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