Harmony in hedging

An integrated approach to hedging is essential, argues the head of Derivative Structuring and New Products at SSB.

Is your company getting its money's worth when it hedges against risk If you are not coordinating your various hedges, the answer might be no.

Like patients who take prescriptions from different doctors, companies that hedge multiple risks without considering how those risks and hedges might interact with each other can suffer unfortunate side effects. At the very least, they might end up over-insuring themselves and paying for risk protection they do not really need. They might even find they have hedged the exposures shareholders are seeking when they buy the company's shares.

The solution is to adopt an integrated approach to risk management that results in cleaner, more cost-effective hedges - hedging...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222