- 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
Execution of LDI derivative strategies
LDI strategies are seen as highly desirable for many pension funds. However such strategies usually rely heavily on the use of derivative products for the purposes of hedging interest rate and inflation risk. As such only around 25% of UK pension funds have implemented LDI strategies so far – these pension funds are usually the largest and most sophisticated, or those who have access to specialist derivatives expertise through their asset managers. In addition to assisting pension funds to formulate and implement LDI frameworks, TradeRisks can either act as execution agent to its pension fund clients or deal directly with any fund manager playing this role for the pension fund, and assist its clients to achieve best execution of LDI derivative trades in the markets.
TradeRisks has an unparalleled derivative pricing capability and a proven track record with LDI clients that has added a huge amount of value on client transactions. Our many years experience in derivatives execution enables us to very quickly understand and model highly complex trade structures, and to determine the key value drivers of transactions for our clients.
TradeRisks advised on and executed (or unwound) around derivatives with a total value equivalent to US$5bn on behalf of its clients during the last 3 years. We have transacted swaps across the entire curve, i.e. 1-40 years. These have included Bermudan cancellable interest rate swaps, structured inflation swaps and other complex structured derivatives.
