Custom
We fit the hedge to your risk, not attempt to fit your risk to a standard hedge.
Swaptions, collars, corridors, flooridors, the right shape can match a vanilla hedge’s protection for far less. We reach for them only when the economics justify it.
A plain cap or swap solves most problems, but not all of them, and not always at the best price. When the rate exposure is unique, a more creative hedge can deliver the same or better protection for less.
Custom hedging might mean considering less common hedge types such as collars, corridors, floors, flooridors, or swaptions. It might also mean blending various hedge structures to align with the unique risks of the financing.
The Pensford guys are the derivative experts that solve the problems that you didn't think you needed solved.
Custom should never mean opaque. We reach for a structured hedge only when the economics justify it, and we lay out the trade-off in plain language, exactly what upside you surrender in exchange for lower cost. You get the same competitive execution and documentation discipline we bring to vanilla trades, wrapped around a structure tailored to your exposure.
