Our Global Markets specialists provide a range of risk management and hedging solutions to protect clients against the suite of interest rate, currency, liquidity, commodity, equity and credit risks.
Interest rate risk solutions
Changing interest rates can reduce one’s investment returns or increase borrowing costs. If you were indebted by way of a secured or unsecured loan, a mortgage, or asset-based finance, an interest rate risk exposure exists.
Our range of appropriate interest rate hedging solutions are designed to manage this risk through:
- Bonds – one of nine primary dealers in government bonds
- Derivatives – we create structures of any complexity
- Inflation – the premier inflation-linked house in South Africa
- Options – we offer a full range of OTC options and option structures
- Repos – currently more than 35% of all repos booked on the JSE
Currency risk solutions
We protect clients against fluctuating exchange rate risks to avoid reduced earnings and protect their offshore assets.
- Forex dealing – access to an experienced team of dealers
- African and G20 currencies – cross-border sales and trading for African institutional clients
- Foreign exchange options – hedging solutions to corporate and financial institution clients
Commodity risk solutions
Unforeseen changes in commodity prices can negatively affect one’s earnings or increase one’s input costs. Our range of appropriate hedging solutions are designed to manage this risk.
- Trading – covers the entire commodities complex
- Dollar Custodial Certificate – a solution to globalize your retained earnings or savings into a highly liquid, dollar-based asset
- Krugerrand Custodial Certificate – a global first that enables investors to have direct ownership in listed, physical gold
- Krugerrands – a great way to diversify a portfolio by investing in real gold bullion
Credit risk solutions
Changing credit spreads can reduce investment returns or increase borrowing costs. Our specialists offer a range of innovative credit risk management mechanisms to mitigate these risks.
Liquidity (cash flow) risk solutions
Managing short-term cash flow without access to bridging finance can be problematic. This risk arises when one does not have sufficient funds available or if funds are tied up in working capital. We can mitigate this risk by offering liquidity through lending (from overnight to term) by way of:
Contact us:
- Approved credit lines per client
- Financing commodities throughout the entire working capital chain
- Facilitating funding through capital markets via commercial paper and corporate bond markets
