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Creatively seeking alpha

Derivatives are complex financial instruments whose structures and return profiles need to be rigorously analyzed whether you are a hedger or a speculator. Leveraging on our corporate finance and financial modeling expertise, we help companies and portfolio managers structure, execute, and monitor derivative strategies so they can mitigate risk and efficiently enhance returns.

D espite their effectiveness, derivatives such as options and futures are still not widely used by finance managers due to the complexities involved in valuing and modeling them. Our Derivative Strategy practice was designed specifically to address this challenge. We work closely with finance managers to design, model, execute, and test derivative strategies so they can effectively analyze and mitigate their risk exposures. 

“Opportunity and risk come in pairs.”

― Bangambiki Habyarimana

Option Strategy

Foreign exchange movements, stock market volatility, and commodity price fluctuations can pose challenges to the budgeting and forecasting process. As such, we help companies design bespoke strategies that provides certainty to pricing & costing and risk management functions.

Futures Strategy

Futures and forwards can be used to quickly and cost-effectively modify investment positions. From hedging volatility to taking directional bets to rebalancing portfolio exposures, we work closely with managers to select the appropriate instrument, structure the trade, and model the return profile under various scenarios.

Swap Strategy

A swap can be used to convert fixed to floating obligations (or vice versa) and obtain access to cheaper financing in foreign markets. We can help companies identify the swap structure that suits their needs and evaluate swap agreements during negotiations to ensure payoffs are clearly understood among the parties invovled.