FX Risk Management - Currency Overlay
Currency risks cannot be eliminated, but they can be managed
Investments and business transactions in foreign currencies involve a considerable foreign exchange risk. Their success is affected by exchange rate movements, which can have a substantial impact on overall results. In extreme cases, they can even turn profits into losses.
A disciplined and systematic currency management shields companies and investors from extreme losses by greatly reducing both volatility and drawdowns.
Metzler's experienced FX Risk Management team offers a currency overlay for institutional clients. An overlay strategy comprises the selective management of currency risk, irrespective of the underlying. All risks are monitored and documented by the overlay manager. In this way, currency risks can be managed efficiently, taking into account the client’s individual risk tolerance. In addition, clients achieve a clear division of risk responsibilities: investment decisions are kept separate from foreign exchange risk. Overlay strategies increase the flexibility of clients when market conditions or currency exposures change, for example, as a result of revised turnover expectations.
|Passive overlay||Active overlay|
Alongside a transparent daily reporting, comprising understandable performance measures and meaningful risk indicators, our FX Risk Management service includes the reporting of all reportable derivatives transactions under the European Market Infrastructure Regulation (EMIR) and a best execution process optimised by currency pairs to avoid unnecessary expense.
Companies and institutional investors are aware of the possible consequences of unhedged currency exposures. Metzler Bank is a reliable and independent partner with many years of expertise in FX trading. Our FX Risk Management offers you an innovative package comprising risk analysis and a custom-tailored hedging strategy for your currency exposures.
Head of FX Risk Management
(+49 - 69) 21 04 - 2 81
(+49 - 69) 21 04 - 2 74
(+49 - 69) 21 04 - 2 75
(+49 - 69) 21 04 - 3 50
(+49 - 69) 21 04 - 2 79
|FX Risk Management|
Fax (+49 - 69) 21 04 - 6 79