Managing FX risk is often wrongly deemed as cumbersome, confusing and an unnecessary expense.
Our team of experts have experience with hedging every aspect of a cross-border deal. Our team works with you to:
Accurately quantify the FX risks
Clearly suggest relevant hedging strategies
Present transparent costs and execute
For certain clients we offer forward facilities with 0% initial margin. Freeing up valuable capital and enhancing returns without sacrificing your core risk principles.
Our aim is to empower our clients to make more informed decisions on whether to hedge or not. We believe every firm has the right to place the hedges they need using affordable transparent products.
Ways You Can Utilize Our Expertize...
Deal Contingent Hedging
Going unhedged during the due diligence process of a cross-border acquisition can be risky, as a deal failure may occur due to reasons outside of your control. Traditional options hedging strategies offered by the banks to account for such scenarios are often costly and inflexible and are usually only available to the world’s most sophisticated managers. Our industry-leading deal contingent hedging solution, limits FX losses or cancellation costs on any type of cross-border acquisition via our proprietary optimum basket hedging tool and short-term SPV banking structure.
Cash Flow and Balance Sheet Hedging
The changing strength of your domestic currency has a significant effect on the value of your global revenues and profit margins. We believe that everyone should be able to make more informed hedging decisions, but too often it’s only the largest multinationals who are to do so. We help our clients simplify and stabilize their global business operations, understand their FX risk/return and reduce volatility.
Understanding whether or not you should be hedging, and deciding the optimal approach, can often be a daunting task. Often, it is left up to the finance team to decipher and evaluate the effectiveness of the proposed hedging strategies. However, the key issue - the likelihood of each outcome (and the resulting expected value) is not represented in any meaningful way. Understanding the distribution of outcomes is key to evaluating the true efficacy of a hedge strategy. Using algorithmic modelling and robust simulations, Deaglo can analyze your current hedging strategy and potentially suggest more effective solutions.
Portfolio Hedge Optimization
Innovative treasury management solutions shouldn’t only be available to multi-billion dollar firms. If you have a portfolio with numerous FX exposures of varying sizes, volatility and (potentially) natural hedges, how do you identify and quantify the most efficient set of hedges? Utilizing each element's size, volatility, correlation and hedge costs, our portfolio hedging solution identifies an efficiency frontier which optimizes risk reduction per unit hedge cost at the portfolio level.
Illiquid FX Proxy Hedging
Minimize the hedging costs of illiquid and exotic currency pairs by utilizing our algorithmic-based proxy optimization tool. Our pioneering tool, which uses a unique application of Bayesian regression, identifies a basket of currencies with sufficient correlations to act as a proxy and mirror your target illiquid currency. Our proxy baskets are more liquid and can be hedged at significantly lower costs.