Forex Hedging Service
Foreign exchange volatility can impact an organisation in many ways, from creating near term cash flow and earnings volatility, to influencing competitive position and strategic opportunities over longer time horizons.
Fully understanding the multi-faceted relationship between FX movements, underlying commercial dynamics, and other risk exposures is essential when designing an effective currency risk management programme.
At Vega FX our methodology involves a careful quantitative and qualitative analysis of currency exposure, internal business considerations, objectives and constraints to facilitate the design and implementation of a robust risk management strategy. This will often combine internal process changes in combination with a financial hedging programme, to maximise hedging effectiveness whilst minimising hedging costs.
Tactical Hedging Service
Within the context of a structured hedging programme, we provide tailored and proactive currency market analysis to identify tactical hedging opportunities, and we work with clients to regularly calibrate hedging strategies to ensure continued alignment with changing business requirements and market conditions. Our advisory service and interactive technology ensures that underlying FX risk and hedging activity is monitored and reported in an intuitive and actionable format.
Interest Rate Risks
The effective management of interest rate risk requires an analysis of the overall capital structure and debt profile of the business, and a determination of the optimal fixed / floating debt mix.
Hedging instruments are used to calibrate the exposure profile to ensure that it:
- Matches underlying commercial dynamics; and
- Meets the requirements of the bank or lending syndicate.
As an independent advisor and hedging co-ordinator, Vega FX ensures that hedging strategies are designed and executed to suit the objectives of our clients, and that full price transparency and efficient hedge execution is achieved for all hedging transactions.
Following the selection of an appropriate hedging instrument or portfolio, Vega FX will negotiate documentation, and arrange and co-ordinate the transaction via competitive auction or direct negotiation.
In addition, Vega FX offers risk reporting services and technology to ensure that interest rate exposures and hedge valuations can be tracked and monitored regularly, ensuring full risk transparency.
Our Other Services
- Debt Syndication and Private Equity
- IRS Valuation
- FX Workshops for Corporates