Collars
European exporters add flexibility to FX hedges
Corporates with USD exposures have been reducing hedging tenors and adding optionality
Corporates eye complex FX hedges as carry costs mount
Leveraged forwards and options-based structures entice treasurers facing rates uncertainty and FX volatility
Gamma jitters from defined outcome funds
Tumbling equity markets could flip dealers’ exposure to gamma from long to short, leading to hedging losses
Corporates look to collars amid rates uncertainty
Selling the floor can cover majority of cap’s premium
FX hedging dilemma vexes corporates as costs spiral
High volatility jacks up option prices, forcing firms to reconsider hedging activities
Asia collar financing surges on back of Covid-19 volatility
Options-based structures gain ground on margin loans – and dealers say it may be a structural shift
Shale firms pump hedge books for liquidity lifeline
Lucrative hedge portfolios offer promise of cash but unlocking residual value won’t be simple
New frontiers
Innovative investment opportunities are helping to mitigate risk and satisfy Solvency II capital requirements as insurers face continued economic uncertainty. Frederic Morlaye, managing director, insurance and capital management solutions, Global Markets…
Cash no longer king in European swaptions
Barclays executives explore weaknesses of current pricing formulas for cash-settled swaptions
Euro swaptions market prepares for pricing revamp
Interdealer market to adopt collateralised cash price from July, but some fear impact on legacy books
Oil rout roils E&P and airline hedging strategies
Price dive rewards producers with cautious risk management practices
Equity derivatives house of the year
Equity derivatives house of the year
UK banks face up to SME swap misselling claims
Sales of the unexpected
Air China CFO wants simpler fuel hedges; other airlines remain unhedged
Air China will seek simpler hedging strategies when its current contracts expire. Meanwhile, other airlines in Asia are taking differing approaches to hedging, with some risking big profit losses by staying completely unhedged.