Buy-Side Leaders Panel

Buyside FX hedging strategies in a low vol environment

It’s an interesting time to be running an FX hedging book. On the one hand, volatility is declining and looks set to soon reach pre-Covid levels. On the other, rising inflation means potential for movements in rates, which will have knock on effects on spot, forward points and options vol.

On this panel, leaders from the buy side will discuss:

• Swaps/forwards rolling strategies going into year-end

• Whether current conditions will require a change in duration of hedges

• Are alternative hedging instruments useful in this environment?

• Strategies for sourcing FX spot and derivatives liquidity