Improve Your Treasury Strategy
Increase Profit | Reduce Risk
Treasury management involves managing well the volatility emanating from the financial markets with optimum cost. As a corporation you may be exposed to risk on one or more asset classes such as
1) Foreign Exchange 2) Commodities and 3) Interest Rates.
Every successful company has a great treasury. Even if you already have a good treasury, you-as the Leadership team and senior management need to constantly look out for best performing strategies which optimizes risks, increases savings further and ultimately improves profitability. This is where we can work with you to bring in improvements. With us, you can be assured of improving what you are already doing.
We build customized Treasury solutions for your corporations to help you Increase Profit and Reduce Risk. At QuantArt, each day we look at more than 200 Treasuries, 1000s of deals and many successful strategies. So, it is no surprise that for 100% of our clients we have minimized risk further, decreased costs each quarter and improved their annual profits.
Our focus to look for best strategies has ensured 100% success rate for our clients by improving profitability and reducing risk over the years. We know what we are doing- as we are single focused, objective in our approach, are well read on global markets and use proprietary algorithms which has been tested on more than thousands of deals.
Daily Morning Update: Global Markets and USDINRFOMC Minutes, Fx and Commodity Risk Management. (22nd February 2024, 7:00 AM) INR likely to open around 82.95 Dollar traded sideways even as FOMC minutes revealed caution from the members regarding rate cuts....
Ramification for various Asset Classes are as follows:
Foreign exchange risk arises from any or more of the activities like Exports, Imports, FC Loans, FC Investments. Managing the foreign exchange risk is critical to ensure improved profitability and reduce cost. A few sample questions you need to ask yourself are as follows –
a) What’s the value at risk, CF at risk and P/L at risk number for my company
b) What are the better strategies being used by other companies in similar situations as yours.
c) How much more cost you could save or more profit you could earn while reducing risk
d) Are you using the right hedge instruments
e) Do you have the right processes
f) Are you using right tools, softwares, algorithms for hedging
QuantArt optimises your strategy by asking 30 such questions and improving each of the parameters therein.
Many companies either buy or sell products linked to commodities like Copper, Aluminium, Steel, Lead, Naphtha, Rubber, Crude derivatives, Gasoline, Palm Oil, Agri commodities etc. The extreme volatilities in the price of such commodities makes it difficult to manage profitability and cost. For example- the base metals price increase is hurting many automobile manufacturing companies which use such commodities as raw material.
The risk can be hedged and managed well in international exchanges like LME, CME, SGX and also in the OTC Market. QuantArt helps their clients in efficient set up, basis-risk analysis, strategy and execution of the same
Interest Rate Including Funding
Every company is either net borrower or net investor and hence exposed to interest rate risk. The borrowing companies need optimize the strategies so as to reduce interest cost. Often an experienced understanding of successful strategies reduces interest cost significantly. Companies with similar credit standing may have interest cost differential up to 3.00% p.a. and that’s very significant.
QuantArt has unmatched experience in optimizing your interest cost and funding requirement to ensure that you have the lowest possible interest cost. Savings is 100% assured since QuantArt constantly scouts and calculates for interest cost savings strategies. If you have invested then you need to first ensure safety of your funds and at the same time try to maximize the fixed income return you will be getting. QuantArt helps you there with risk management insights, cross asset linkages and by ruling out wrong products
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