Hedging price risks

For large companies – companies whose production cycle depends on raw material prices, interest rates or exchange rates – the issue of mitigating price risks in commodity assets, currencies and interest rates is relevant. We are ready to create a product for an individual request of the Client, taking into account the peculiarities of his business activity.

Underlying asset: raw materials, currencies and interest rates

When planning and conducting business activities, it is important for companies to be certain about something as important as the price of the underlying asset. Changes in the price of key raw materials for production – oil, grains, cocoa, metals – will affect the budget and financial results. A negative change in the exchange rate of the dollar or euro will also affect the activities of companies importing or exporting products or goods. A sharp increase in interest rates on loans in the future could negate the economic viability of many large-scale and long-term investment projects in infrastructure construction and development.

The risk of changes in the price of the underlying asset can be insured.

AME Capitals has the appropriate expertise and offers comprehensive solutions for hedging commodity and currency and interest rate risks.

Which companies are interested in hedging the price of the underlying asset:

refineries: crude oil and petroleum products, "crack spreads"
airlines: jet fuel, US dollar exchange rate, euros
shipping and transportation companies: fuel oil and diesel fuel
exporters or importers: US dollar, euro, yuan exchange rate
agricultural producers: grain and oilseed crops, certain types of fertilizers, diesel fuel, weather risks
food industry enterprises: sugar, cocoa, coffee, vegetable oil
tour operators: US dollar exchange rate, euro exchange rate
construction and development companies, banks: interest rates

Complex hedging products provide risk mitigation against unfavorable changes in the price of the underlying asset. With hedging, you know exactly at what price you will buy or sell raw materials or currencies in future periods.