Dynamic Hedging Programme
Unlock your future with a programme tailored to your business.
Institutional Hedging Architecture for Volatile Markets,
Maximising Protection and Participation at Optimal Cost
Maximised Protection
Maximised Participation
Optimised Cost
Predictable Cashflows
"Protection at Any Cost is Easy. Optimal Protection is Engineering."
A static hedge locks tomorrow’s prices to today’s information. Sometimes a fraction of the exposure needs covering, sometimes far more, and rarely in the same form. A fixed hedge and instrument set serve neither.
A dynamic programme treats the underlying exposure as a position to be managed, not a decision taken once. Instruments are blended into a dynamic hedgebook that adjusts to macro, geopolitical and supply and demand developments. Cover and structure are sized to the risk actually present.
Engineered Around Your Mandate
No two institutions carry the same exposure profile, risk tolerance or reporting obligation, and the right balance between protection, participation and cost differs with each. Every programme is calibrated to the client’s own mandate, governance framework and disclosure requirements, and measured against objectives agreed at the outset.
Reduce Volatility and Secure Cashflows
Cashflows You Can Plan Against
A dynamic hedgebook narrows the range your cashflows move within, so budgeting rests on a defensible number rather than a forecast.
Protect Assets and
Liabilities
Both Sides of the Balance Sheet
Exposure is managed across assets and liabilities together, so a movement that helps one side is not quietly undoing the other.
Stabilise Input Costs and Selling Prices
Margin Protected, Not Just Selling Price
Input costs and selling prices move on different drivers, so each is managed on its own terms. Margin is protected as the result of managing both.
Reduce Losses and Strengthen the Balance Sheet
A Known Worst Case
The downside is defined before it occurs rather than measured after. Reported results carry a known worst case instead of an open one.
Improve Credit Standing and Reduce Debt Servicing
A Stronger Case to Lenders
Demonstrable risk management supports credit assessment and covenant headroom, which is reflected in the terms available on borrowing.
Improve Planning and Capital Allocation
Commitments Made With Confidenc
Capital is committed against a known range rather than a hoped for one, so a project stands or falls on its own economics rather than on a price assumption made years earlier.
Independent, Embedded and Actively Managed
How We Work An in house team working alongside yours, independent of any bank, managing the hedgebook as market conditions evolve.
We hold no balance sheet and take no position against yours. Pricing is sourced across a panel of banks rather than a single counterparty, so execution is competitive by construction rather than by negotiation.
The team works inside your organisation as an extension of your treasury and risk function, present in the decisions rather than reporting on them afterwards. That proximity is what allows the hedgebook to respond to your commercial position as it changes.
Hedge ratios and instrument mix are reviewed continuously against agreed parameters. Each adjustment is recorded against the market conditions that prompted it, so the programme can be explained to an oversight board at any point.
The Aim of the Programme
Structured, Not Standardised
Hedging instruments are commonplace. The structure around them is not. Each programme is built against a specific exposure, mandate and budget rather than fitted to a template, which is where cost efficiency is actually found.
The 70/70 Objective
Every programme runs to an agreed protection and participation target, commonly 70% of each. Delivering both as conditions move is the work — the hedge ratio and instrument mix change, the targets do not.
The Premium Problem
Vanilla options offer comprehensive protection, but premium can reach 20% of total exposure — impractical at institutional scale. Blending instruments dynamically targets a comparable protection and participation profile at materially lower outright cost.