At Record, we pride ourselves on creating bespoke solutions to client’s specific currency needs. As a result, we offer a range of additional services, ensuring that clients can meet their currency demands from a regulatory, operational and investment perspective. Products and services offered here range from Cash and Collateral Management to undertaking a currency transaction analysis.
Cash and Collateral Management
We offer a service whereby we manage and monitor our client’s daily FX margin requirements, either arising from mandatory regulatory requirement, or a client’s choice of collateralised bank lines.
Returns on any cash (allocated to service cash flows or margin requirements arising from the currency program) can be enhanced through the use of various instruments.
We routinely execute spot and forward trades related to client portfolios at spreads narrower than benchmark rates (WM/Reuters). As an additional service for our clients, we can execute unassociated spot trades, as required.
Transaction Cost Analysis (TCA)
Deals involved in currency transactions are typically undertaken by an international equity manager or custodian. We can help place an accurate value on these deals and the costs associated with them.
We can implement a tenor management strategy designed to optimize the impact of the interest rate differential at different time horizons by adjusting the duration of hedges.
For clients with sufficient access to direct lending and borrowing facilities we can advise on and implement positions to achieve cost effective hedging in line with market opportunities.
Cross Currency Liquidity
Clients seeking to enhance yields on their liquid assets can benefit from accessing short-term liquid instruments (deposits, fixed income paper, etc.) in foreign currencies while hedging these exposures and earning the yield differential between the two countries.
Our cash and liquidity management proposition consists of assessing and monitoring how much cash is required to meet all regulatory margin requirements associated with a hedging program. We can implement a strategy (in line with liquidity needs and return objectives) to minimise cash drag by managing any surplus cash to earn a return.