- Assistance in establishing customer risk profile.
- Educating clients on hedging structures and theory.
- Assistance in establishing hedging strategy.
- Assistance in setting up Exchange based hedging accounts.
- Assistance in setting up OTC hedging accounts.
- Assistance in setting up ISDA (Master Swap Agreement).
- Assistance in setting up ICA (Intercreditor Agreement).
- Other risk consulting as required.
We believe that it is extremely important for companies to constantly examine their risk management objectives to ensure that their activities in the marketplace are in line with their true core competencies. We also believe that companies should be involved in an on-going hedging program to provide the financial stability and longevity to enhance returns on capital employed and equity, and to ensure that cash-flow is available to participate in opportunities arising in both favorable and unfavorable markets.
Coquest can assist you in educating your key personnel on hedging theory and structures, establishing your risk profile, establishing a risk strategy, and in execution of the appropriate hedging structures. We understand that the involvement of most corporations in commodity markets should be primarily about risk management, not about trading, and we can help to ensure that most of your time is spent in managing your business rather than monitoring commodity prices.
The judicious selection and execution of hedging strategies can facilitate predictable, stable earnings, smooth volatility, release capital formerly held against commodity price movements, guarantee earnings to support capital expenditures, and enable the corporation to maintain and expand its execution plan during adverse market movements.