Interest rate risk-management
"Managing interest rate risk should not aim to predict future movements in interest rates and find ways to successfully time the market but, rather, implement an effective and robust risk management approach for managing capital structure and developing a strategy that supports the business requirements, objectives and tolerance for risk"
Francesco Podesta | Head of Interest Rates
Providing the gateway to best execution and data-led risk management advisory
We ensure your IR risk management division receives independent and impartial quantitative hedging advice, access to best in class execution via our tendering process and reduced administrative inefficiencies. Audere benefits include:
Improved financial performance. Control volatility and risk, protecting your business from unexpected changes in interest rates.
Gain assurance. Audere’s expertise and systems become an extension of your treasury function so you can focus on your core business.
Increase efficiency. Your business will benefit from an end to end solution that integrates risk analysis with tendered execution, reporting and compliance logging.
Audere’s diagnostics process enables you to identify and assess the efficiency of your Interest Rate Management Function (IRMF).
Our platform analyses the key elements of a treasury department’s IRMF. This includes:
Identifying the true value-at-risk from IR exposures
Assess historic transaction costs
Sensitivity analysis to market volatility
Simulated hedge analysis to assess the effectiveness of prior and existing strategies
Counter-party risk assessments.
An independent review by Audere enables you to quickly and comprehensively understand your IIRMF performance as an individual entity, group and relative to peers.
Audere provides this review as the first step in its client engagement process - to identify and analyse any areas of IRMF that can be improved.
Iris RM 1.0
Iris Risk Management (IRM) is our proprietary system which through the user interface, allows clients to measure and manage market risks more effectively. The platform uses proprietary algorithms to evaluate client exposure and determine the most appropriate and cost-effective hedging programmes according to risk appetite, market conditions and financial objectives. Key benefits include:
Visual and fully interactive system, supported by professional advisors
Advanced Value at Risk quantification across multiple asset classes
Monte Carlo simulations and scenario analysis for empirical led decision making
Evaluate existing hedge strategy performance and comparison with alternatives
Independent solution - prevent biased/less objective bank or broker hedge recommendations
Audere tenders its clients’ execution requirements. This ensures best execution on all product classes and reduces the operational process and counterparty risk. We also support with the collation of legal information and the negotiation of term sheets during new credit approval processes.
Our tenders are open to a client’s existing liquidity providers, tier 1 global banks, non-banks and several prime brokers.
By tendering liquidity access, we can ensure clients access best execution in pricing and credit terms.
Iris X TCA
Iris X TCA, developed in-house, is available for Institutional and Corporate clients with an interest in accurately measuring their FX execution costs. The platform connects to NCFX feed data, an award winning, regulated spot and forward inter-bank reference rate data in the foreign exchange market.
Independent, forensic transaction cost analysis to measure historical execution performance
Objective, evidence based assessment of existing bank and broker relations
Improved execution terms negotiated using irrefutable empirical analysis and benchmarking
Meet regulatory demands across multiple jurisdictions - MIFID II compliant
Provides a framework to monitor execution performance against a best execution policy
We are forever innovating to ensure our service meets the needs of our clients in ever-changing market and regulatory environments. Our evolving capabilities offer clients across three core sectors the opportunities to innovate, save money, and create tangible efficiency gains.