Client Type: Investment Bank
Sector: Credit & Structured Solutions
Location: Asia-Pacific
Challenge:
The structuring desk frequently inherited unwanted market risks – including interest rate, inflation, commodity, FX, and equity exposures – as a natural by-product of bespoke client solutions. These residual risks were inefficiently hedged, resulting in P&L drag, increased capital usage, and weakened overall execution. Compounding this, there was no centralised platform to analyse past trades or structures, manage deal flow, or capture insights from structuring activity and market trends.
Solution:
- Designed and implemented targeted hedge programs to eliminate non-core exposures (rates, inflation, FX, equity, commodities), improving clarity and freeing up capital
- Developed on-desk pricing models to benchmark internal desk quotes against external markets, tightening pricing discipline and boosting execution quality
- Built an end-to-end structuring database, covering live pipeline deals, historical structures, pricing terms, and sectoral breakdowns
- Enabled data-driven structuring decisions and captured market intelligence across regions, counterparties, and risk types to support smarter pitching and portfolio recycling
Result:
- Boosted desk profitability through cleaner hedge overlays and improved pricing alignment
- Reduced market risk exposures and capital usage, increasing flexibility and capacity for new trades
- Accelerated deal execution and increased structured product turnover
- Created a lasting internal advantage through reusable structuring intelligence and institutional memory
Value Delivered:
Combined tactical hedging precision with strategic market insight – enabling the desk to deliver cleaner, more profitable trades while reducing capital drag and unlocking deal flow velocity.