- Are you concerned that your current hedging strategy isn't effective?
- Are you concerned for not getting fair market price for your hedge transactions?
- Are you concerned that you’re spending an inordinate amount of time working on your hedge strategy rather than your business?
Religare Commodity Corporate Desk
educates the producers and consumers about the benefits of hedging and hedging opportunities available.The desk provides guidance to the Corporate / Firms on the entire life cycle of their hedging strategies, including designing, implementing, and monitoring.
Uninformed hedging decisions, combined with sustained volatility in the commodities market, can be disastrous for companies of all sizes. The Religare Commodity Corporate desk helps smarter decision making with a higher risk-adjusted return on capital.
Meet the key stakeholders to understand the business and goals. Analyze the commodity risk inherent in production and/or consumption. Define the hedging objectives given budgetary, legal, and credit constraints.
Make an assessment of the current and future enterprise-wide commodity risks. Analyze future cash flows using a sophisticated, multi-factor Monte Carlo approach. Generate different price options and volatility scenarios. Quantify the hedging strategy in an optimal risk/return framework.
Provide guidance for the analysis of available hedging strategies.
Implement the selected hedging strategies by providing independent pricing and fair market valuations.
Monthly consultation on the performance of the hedging programs, supported by the following analytics and reports:
Complete P&L Decomposition
Counterparty Credit Exposure
Value at Risk (VaR)
Cash Flow at Risk (CFaR)
Updated “best case,” “worst case” and “base case” cash flow scenarios
Create numerous price/volatility scenarios and stress tests on a periodic basis