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Markets | Riskbridge
Markets | Riskbridge
Markets | Riskbridge

MARKETS

Markets | Riskbridge
Markets | Riskbridge
Market expertise is at the heart of what we do:
Interest Rates

Interest expense accounts for a major component of cashflow over a typical asset life.  Optimising the hedging approach will maximise stakeholder value, reduce the probability of default and maximise future possibilities for the asset.  In many cases, particularly treatment of legacy derivates, it will be an integral part of the financing decision.  

 

Over the past several years, interest rate derivative pricing has become exponentially more complex as funding, credit, clearing, collateral and regulatory capital have all become meaningful elements of cost.  Riskbridge has the up-to date knowledge and experience required to advise on interest rate swaps and options, included embedded caps and floors, in all major currencies. 

Cross-Currency Hedging
Cross-currency hedging allows debt to be issues in a currency other than the asset's revenue stream, which may generate value where foreign currency funding is cheaper than domestic debt.  In extremis, national infrastructure pipelines may be constrained by availability of domestic funding and cross-currency hedging is therefore a component of program viability.  Cross-currency instruments are, however, illiquid and highly credit intensive, and need to be provided for early in the financing process.
Foreign Exchange

Foreign exchange trade pricing and liquidity varies widely between banks.  Determining the optimal bank counterparties, and setting up and maintaining lines, can become a time-consuming exercise.  Riskbridge assists with all aspects of the process, from trade structuring through ISDA negotiation and execution.

 

Inflation Derivatives

​Inflation derivatives can often provide precise hedging of index-linked cashflows, including any caps or floors and unusual reset features.  However, the number of providers of such instruments has declined and such trades typically need to be negotiated on a bespoke basis. 

 

Structured Debt

Riskbridge advises on structured cashflows embedded within notes, structured loans and receivables portfolios, including pricing, structuring and negotiation of terms (in particular, early termination payments), restructuring and documentation.

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