Large companies

It is important to mention that we adjust our advisory work to the individual client; this means that each individual case will be treated differently. In order to give you an idea about the way a large company could use our capabilities, you will find some specific situations described below.

We offer independent financial market outlooks concerning the major markets and economies including China and India. The outlook does not only focus on the interest rate, currency and equity markets but particularly at the risks the individual company should take into account. It is based on our Risk & Opportunity Monitor which offers a very dynamic approach to the ever-changing markets. This presentation can either be done in connection with other risk conversations or on a stand-alone basis. As we do not offer financial products our clients will never be confronted with the offer of any financial products – neither during nor after a conversation or a presentation.

If desired we can look at one specific risk in close detail. This could, for example, be a translation risk from an investment in a foreign company or another large single currency exposure.
Often the question occurs whether the company should hedge some of the risk, and if so, at what rate area and how much. We certainly have some market expectations though market assumptions alone do not serve as a satisfactory decision parameter. We use the quantitative analysis as a means to take a look at the expected price fluctuations. This is done for optimization purposes so the company does not pay for a hedge with a low probability to become active. Or conversely, if the company seeks to obtain an insurance against the unlikely, the model helps to find a response to where it should be, from a statistic point of view.
We also operate with quantitative analysis concerning interest rate risks. One particular risk could be of interest but for larger companies the interest rate risk model can be extended. This would cover not only the total hedge portfolio but also to include other cash flow effects from the total debt portfolio. This provides a sophisticated management tool which helps you to find the optimal hedging.
Should situations occur which require programming and simulation of risks in a Monte-Carlo model Lundgreen’s Capital also has the capacity for this.
In order to obtain more information about the way we work, the following pages are worth a visit:
Specific hedge advisory
Quantitative risk analysis
Lundgreen’s Risk & Opportunity Monitor