Hedging and treasury
Hedging policy and bank execution
For companies exposed to FX, interest rates or commodities: exposure measurement, policy, competitive quoting across banks, verification of executed prices. No product is sold.
Engagements
From exposure measurement to execution control
Exposure mapping
Commercial flows, debt, cash, off-balance-sheet commitments: we measure the net exposure by currency, maturity and rate, and the sensitivity of earnings to a market move.
Hedging policy
Objectives, permitted instruments, hedge ratios, horizons, limits, governance and reporting to the committee. A short, workable document the board can approve.
Competitive quoting and price verification
For each transaction, an identical specification sent to several banks, quotes taken at the same moment, and the executed price checked against market mid. On a forward or a swap the bank spread is measured in basis points. We measure it.
Audit of existing hedges
Value, leverage and residual risk of each open position. Particular attention to barrier structures, accumulators and TARFs sold as zero-cost hedges.
Documentation for the accounts
Designation of hedging relationships, effectiveness testing, fair value at the reporting date. A file the accountant and the auditor can use without rework.
Ongoing coverage
Monthly or quarterly reporting of positions, hedge results and deviations from policy. Attendance at the treasury committee.
Private equity
For funds, we work at portfolio-company level: hedging of acquisition debt before closing, review of inherited hedges during due diligence, a common policy across the portfolio. The fund keeps a consolidated view; each company keeps its own execution.
Fees
- One-off engagement
- Fixed fee per engagement, quoted after a first call: exposure mapping, policy, hedge audit, documentation of a transaction.
- Retainer
- Annual retainer covering competitive quoting of transactions, price verification, reporting and the treasury committee.
- What we do not do
- No commission on transactions, no remuneration from any bank. Savings on spreads stay entirely with the company.
Contact
An exposure to hedge?
Tell us the currencies or the debt concerned, the volumes and the timeline. We come back with a first reading and a scope of work.