Asian companies get smart about derivatives: Part II

Corporate use of derivatives has risen sharply over the last five years. Nick Lord continues his two-part article about hedging risk.

Those companies that have a comprehensive policy of using derivatives range from the large multi nationals down to conservative local corporations and medium sized companies. According to one estimate, usage however is only at about 40% of its potential. There is still a long way to go, says the derivatives banker speaking off the record.

The banker believes that Singaporean government linked companies have the worst record when it comes to derivative usage, which is ironic given how much Singapore wants to make itself the derivative hub of Asia. Other companies that do not use derivatives nearly enough are the large Chinese companies that are emerging. This is primarily due to the lack of an...

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