the future of FX.
Treasurers need all the help they can get to safeguard vital profit margins and precious resources. Here’s how we do it.
Risk management strategy
The problem: Achieving FX objectives
Determining the nature of FX risk – size, likelihood, impact on profitability – can be a complicated affair.
Understanding the full picture includes analysing multiple transactions, inter-company debt, anticipated revenues and more. Accurately netting exposures and selecting the optimum strategies to meet FX Policy objectives requires informed analysis, often Monte Carlo simulations, and a deep knowledge of the interactions between these items.
Whilst most treasury teams know what their objectives are, they don’t always have the time, tools or expertise available to undertake this analysis in-house.
The solution: Independent strategy design
Our hedging strategy design process begins by helping you identify and measure currency risk whilst ensuring hedging policy objectives are appropriate to meet your business goals.
After this framework is in place, we are able to independently assess hedging alternatives that best meet these objectives. This process is usually iterative, with an initial selection phase followed by a calibration phase to ensure the best possible outcome can be expected.
We empower finance teams to make rational, objective and informed decisions on hedging. In turn, client’s are able to achieve their FX risk objectives and meet performance benchmarks at minimum cost.
Hedging program administration
The problem: Complex manual workload
Treasury teams and CFOs are often forced to dedicate significant resources to managing fragmented FX processes, when they could be creating greater value with strategic initiatives.
Existing processes do not always provide the desired level of visibility into hedging strategy effectiveness, risk metrics and trading costs.
Furthermore, it’s not easy creating hedging processes which are effective, objective and robust. Manual or Excel-based FX risk management can be error-prone, difficult to scale, and hard to maintain.
The solution: Robust hedging process
Bondford has designed and implemented systems which address these issues, ensuring that the designed strategy is executed precisely and that operational risk is removed.
Our system manages forecasts and trades across multiple currency pairs to maintain a picture of exposures from which risk metrics can be continuously monitored and future hedges determined.
Most importantly, client workload is minimal. Data is typically provided just once per month, trading can be calibrated to take place on the last business day and reporting can be customised to meet client team needs.
Best execution consulting
The problem: Opaque, unknown costs
The OTC FX market is notoriously opaque, true costs are tough to identify and negotiated margins are often difficult to maintain
Treasurers lack access to independent FX data and analytical tools that can help them compare the efficiency of counterparties, liquidity venues and products. Without this, inefficiencies cannot be identified nor performance monitored and maintained.
Are you managing FX in the dark?
Our solution: Total transparency
Bondford’s best execution tools provide detailed visibility over your FX costs.
Our independent data and analysis enables you to improve your negotiation ability, hold counterparties accountable for performance and identify infrastructure improvement opportunities that can lead to significant cost-savings.
We combine technology with a full suite of independent advisory services to help you define best execution policies and implement best practices throughout your FX dealings.