Hedging

Our Financial Advisory group works closely with our Commodity Management group to provide independent advice on strategy and execution of hedging programs to clients with commodity market risk exposure or financing related hedging requirements.

Our Hedging advisory services provide customized commodities risk management programs tailored to client's financial needs, without bias toward particular strategies, trading counterparts, or means of execution.  On hedging assignments, the Financial Advisory group is responsible for:

  • Analyzing cash flow requirements and existing hedging related contractual arragements
  • Developing appropriate hedging levels
  • Assisting in establishing trading lines with existing hedging counterparties and if necessary introduce clients to new hedging counterparties
  • Assist in negotiation of ISDA documentation
  • Monitor the credit approval process for new trading lines, and evaluate and modify credit documentation to ensure timely provision of trading lines on favorable terms, if appropriate

Upon development of a commodity risk management program and securing of trading lines, our Commodity Management group assesses the relative merits of different hedging structures and assists with execution to achieve competitive market pricing.

Our Hedging services are delivered without limiting or tying clients to a specific financial institution, an important distinction between CPM Group and other market participants.