.jpg)
Running a business is to manage the risks involved throughout the business activities. Bond Trust assists its customers to manage the market risks, including equity, interest rate, foreign exchange and commodity risks.
Equity Risk Management: for substantial shareholders of listed companies, diversification or generating better income from concentrated equity risk is quite important. Bond Trust offers risk management services in the form of advisory on block trading, selling covered call, buying out of money puts, or a combination of different strategies to reach clients’ desired risk/return profile.
Interest Rate/Foreign Exchange Risk Management: for long dated borrowers, assessing and managing interest rate and foreign exchange rate risks become quite important. The company’s value can fluctuate substantially with the change in value of long term liability. Bond Trust assists corporate clients in developing the most cost-effective hedging strategies to manage its interest rate and foreign exchange exposure.
Commodity Risk Management: many Chinese companies import substantial amount of commodities (e.g. oil, iron ore, copper, timber, soy bean) from international markets. The fluctuation of commodity prices could result in large P&L swings. How to execute effective risk manage strategies to minimize the impact of commodity price fluctuation has been on the minds of more and more Chinese companies --- Bond Trust stands ready to offer its years of hedging expertise both in China and in the international markets.
