Global Markets clients are faced with numerous financial market risks and opportunities relating to their income statement, balance sheet and cash flow positions. In this light, RMB Nigeria Global Markets provides clients with a holistic range of solutions:
Fluctuating exchange rates pose many challenges to clients. A change in the exchange rate can increase the domestic costs of running a business, reduce earnings or affect the value of offshore assets. Importers and exporters face differing challenges in prevailing foreign exchange markets. These include:
RMB Global Markets offers a range of foreign exchange products to clients at consistently competitive pricing.
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The global fixed income market allows clients to access investments that provide fixed payments
on a fixed schedule over a period of time. RMB Global Markets facilitates access to the ever-growing treasury securities market in Nigeria and other fixed income products in the
international market. The array of fixed income products provided includes, but is not limited to
repurchase agreements (repos) and Eurobonds.
We participate in primary auctions on behalf of our clients and for our own account and also efficiently execute clients’ requests in the secondary market via our local trading platform. Advisory solutions on timing, pricing and volume are also provided to clients to ensure our clients are well informed for sound participation in market issuances.
Changing interest rates can reduce a client’s investment returns or increase a client’s borrowing
costs. Where a client is indebted by way of a secured or unsecured loan, a mortgage, or asset-based finance, an interest rate risk exposure exists. RMB Global Markets provides a range of
appropriate interest rate hedging solutions to manage this risk.
Unforeseen changes in prices can affect a client’s earnings or increase a client’s input costs,
particularly in the commodities space. This is often the case when price fluctuations in
underlying commodities cannot easily be passed on to consumers, or the cost of holding
commodity stocks in the working capital cycle is prohibitively expensive due to price levels.
A wide variety of energy, soft commodities (e.g. grain), industrial materials and precious metal prices can be hedged irrespective of whether a client is a producer or a consumer. The most frequently managed commodity risk is the local fuel price, including hedges for AGO, PMS, LPG, paraffin, bunker fuel, as well as the underlying international oil price.
RMB Global Markets provides a range of appropriate hedging solutions to manage this risk.
Managing short-term cash flow without access to bridging finance can be problematic and this risk arises when a client does not have sufficient funds available or the funds are tied up in working capital.
RMB Global Markets provides liquidity through lending (from overnight to term) by way of:
Our clients want investments that address their needs in terms of duration, liquidity, income,
appetite for risk, asset class diversification, transparency, simplicity, cost structure and
structural efficiencies. Global Markets uses a diverse basket of financial instruments (such as
equities, cash, credit, derivatives, inflation, foreign currency and commodities) to meet these
needs in the traditional and alternative market space.
RMB Nigeria leverages the broader FirstRand regional and international platform to provide a wide range of tailored investment solutions.
RMB Global Markets has a team of highly-experienced, widely skilled specialists and dealers who provide a comprehensive range of Global Markets risk management and investment solutions to a select client base through:
Relationship teams – At RMB Global Markets we are committed to understanding our clients’ businesses and nurturing and adding value to these relationships. Highly experienced relationship teams focus on the full spectrum of financial market risk solutions according to each client and their needs.
The Global Market Sales Desk – is manned by Trading Sales (Foreign Exchange and Fixed Income) and Trade Finance Corporates. The relationship teams work with all stakeholders to ensure a seamless service experience across our product set.
Customer Dealing – RMB Global Markets’ experienced team of customer dealers conclude and confirm foreign exchange and money market transactions while sharing their global market knowledge and expertise by assisting clients with suitable and cost-effective solutions.
Structuring – Through a strong partnership with the in-country sales and trading teams, RMB Nigeria leverage off the expertise of the RMB Global Markets Africa Structuring team to offer bespoke hedging solutions to their Nigerian client base.
RMB Global Markets’ Structured Solutions team has been a market leader in South Africa for many years. A team of quantitative analysts and financial engineers use financial modelling techniques to engineer financial solutions for clients with more sophisticated risk mitigation requirements (foreign currency, interest rates and commodities).