Navigating Basis Risk: The Challenge of Correlated Assets in Hedging

Consider a high-net-worth client who approaches you with a substantial portfolio of corporate bonds, worried that an uptick in policy rates will depress their current holdings. To protect the portfolio, you might...

The Real Cost of Hedging: Beyond the Transaction Fee

Consider a situation where a high-net-worth client with a ₹50 lakh portfolio of G-Secs approaches you, panicked by reports of a potential rate hike. They demand that you hedge their exposure using Exchange Traded...

Understanding Market Depth in Interest Rate Derivative Hedging

Consider a scenario where an HNI client, heavily invested in a long-duration debt portfolio, approaches you seeking to hedge their interest rate risk using Exchange Traded Interest Rate Derivatives. You identify that the...