linkedin
BROUGHT TO YOU BY
Exclusive Access, Inclusive Growth

WELCOME TO ET PRIME

BROUGTH TO YOU BY
Exclusive Access, Inclusive Growth
ET Prime
Strategy

Futures, options, swaps: India is yet to fully use well-meaning tools to avoid interest-rate shocks

On average, hardly 60% of corporate risks are hedged. Current market realities highlight the need for sound hedging practices. While newly introduced hedging instruments only amount to incremental measures, participation from a wide array of stakeholders is required to minimise risks to the financial system.
font size
FONT SIZE
save
SAVE
saved
SAVED
Gift this article
GIFT ARTICLE
madhavankutty-g
12 Aug 2019 11 Mins Read 1 comments
Getty Images
Volatility is no more a dreaded word in finance. In fact, smart traders and investors have developed a fascination for it lately. Volatility offers this risk-loving tribe the opportunity to rake in big money. However, as the 2008 meltdown testifies, a Lehman Brothers-like catastrophe can hit the world any time. As monetary policies across the globe turn more accommodative,
to only incremental measures and participation from a wide array of stakeholders is needed to induce market participants to come forward. There is a need to move away from the current norm, where hardly 60% of a corporate book is hedged. Obviating this is essential to minimise the risks to the financial system. ( Graphics by Abdul Shafiq)
Volatility is no more a dreaded word in finance. In fact, smart traders and investors have developed a fascination for it lately. Volatility offers this risk-loving tribe the opportunity to rake in big money. However, as the 2008 meltdown testifies, a Lehman Brothers-like catastrophe can hit the world any time. As monetary policies across the globe turn more accommodative, to only incremental measures and participation from a wide array of stakeholders is needed to induce market participants to come forward. There is a need to move away from the current norm, where hardly 60% of a corporate book is hedged. Obviating this is essential to minimise the risks to the financial system. ( Graphics by Abdul Shafiq)

The latest from ET Prime is now on Telegram. To subscribe to our Telegram newsletter click here.

Gift this story

YOU CAN GIFT 0 MORE STORIES THIS MONTH

Maximum 10 Email IDs allowed

300 characters remaining

Gift Sent Successfully

Limit Reached
Limit Reached

You’ve gifted all the 0 articles from your monthly gift bucket!

Please come back next month.

0 more articles will be waiting for you in your gift bucket.

CONTRIBUTORS WHO HAVE COMMENTED ON THIS STORY

Current Edition

[[^message]]

Result

[[/message]] [[#message]]

[[message]]

[[/message]]