Corporate risk

Introduction

There was a time, perhaps a year or so ago, that corporate derivatives business could be considered a little staid. Interest rates were at record lows, foreign exchange rates were stable, employee share option schemes were out of fashion, and corporate equity derivatives business had slowed down to a trickle.

A year on, the dollar has plummeted, oil prices are at record highs and US interest rates have risen. It’s put a lot of strain on corporate hedging strategies, forcing treasurers