Cygma - Services

Cygma

HEDGING FOREIGN EXCHANGE RISK IN EMERGING AND FRONTIER MARKETS.

Cygma builds long-term relationships with our clients by taking a comprehensive approach to their risk management needs. The most cost-effective hedging solutions depend on an established risk management strategy and an appropriate risk policy. We advise clients on establishing a risk management framework and provide services ranging from the analysis of currency risk to establishing counterparty relationships on their behalf. We also structure and execute hedges as well as provide ongoing valuations and support throughout the life of each hedge. All hedge positions, documentation, reports, and analyses are available to clients through secure access to our proprietary web-based hedge management system.

Advisory & Analysis
• Analyze foreign exchange risk exposure
• Structure hedges to minimize or eliminate risk
• Evaluate hedging strategies
• Advise on efficient loan structures
• Provide up-to-date hedge valuations and relevant
trade documentation

Process & Documentation
• Negotiate ISDA Agreements, credit facilities, and
   collateral requirements to meet client needs
• Establish counterparty relationships with financial
   institutions where necessary
• Review all transaction documentation to ensure
   accuracy
• Manage all transaction documentation to ensure
   timely execution

Execution
• Provide indicative pricing on potential hedging
   products
• Offer emerging markets FX derivatives
      • Non-Deliverable Forwards
      • Non-Deliverable Cross Currency Swaps
• Arrange transactions with financial institutions
• Manage spot exchanges and currency delivery

Education
• Provide materials to communicate the benefits of
local currency funding to MFI borrowers
• Provide targeted Asset/Liability Management
training to MFIs