- Sovereigns
- Private Equity & Infrastructure Funds
- Housing & Social Infrastructure
- Transport & Utilities
- Pension Funds
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- Asset and Liability Management (ALM) strategies and implementation of holistic LDI risk management frameworks
- Derivatives Modelling and Advisory, including the appropriate structuring of ISDAs and collateral arrangements
- Execution of LDI derivative strategies
- Counterparty credit exposure pricing and management
- Access to non-government inflation linked assets through bonds and swaps
Access to non-government inflation linked assets through bonds and swaps
OTC Exchange is a market place created by TradeRisks for non-bank funding and hedging for corporates, which are natural fixed rate and inflation payers, seeking to transact directly with other corporates wanting to unwind hedges, institutional investors who are the natural fixed rate and inflation receivers, and banks with whom they have no lending "relationship", i.e. no product tie-ins or bundling of loans and hedging.
OTC Exchange is risk and return transparent and unbundles the underlying loan assets from the swaps.
Executing swaps through OTC Exchange reduces:
- transaction execution costs when entering into and unwinding/reversing a swap
- counterparty credit exposure, security utilisation and margin call risk
currently incurred by businesses when entering into long term swaps with their lending banks. In the absence of the pricing competition and reduced counterparty risks introduced by OTC Exchange, these costs and risks have often become so severe that businesses are effectively prevented from managing interest rate risk by their lending banks.
Purchasing listed and rated notes through OTC Exchange provides:
- standard credit analysis facilitating credit comparisons between assets within the same sector
- standardised documentation
- very low transaction costs
OTC Exchange supports the HM Treasury/BoE initiatives to promote non-bank lending and hedging channels.
Further information on OTC Exchange can be viewed here.
