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Interest rate risk-management

"Managing interest rate risk should not aim to predict future movements in interest rates and find ways to successfully time the market but, rather, implement an effective and robust risk management approach for managing capital structure and developing a strategy that supports the business requirements, objectives and tolerance for risk"

Francesco Podesta  |  Head of Interest Rates

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Providing the gateway to best execution and data-led risk management advisory 

We ensure your IR risk management division receives independent and impartial quantitative hedging advice, access to best in class execution via our tendering process and reduced administrative inefficiencies. Audere benefits include: 

Improved financial performance. Control volatility and risk, protecting your business from unexpected changes in interest rates.  

Gain assurance. Audere’s expertise and systems become an extension of your treasury function so you can focus on your core business.

Increase efficiency. Your business will benefit from an end to end solution that integrates risk analysis with tendered execution, reporting and compliance logging. 

Efficiency diagnostics 

Audere’s diagnostics process enables you to identify and assess the efficiency of your Interest Rate Management Function (IRMF). 

Our platform analyses the key elements of a treasury department’s IRMF. This includes: 

  • Identifying the true value-at-risk from IR exposures

  • Assess historic transaction costs

  • Sensitivity analysis to market volatility

  • Simulated hedge analysis to assess the effectiveness of prior and existing strategies

  • Counter-party risk assessments.

An independent review by Audere enables you to quickly and comprehensively understand your IIRMF performance as an individual entity, group and relative to peers. 

Audere provides this review as the first step in its client engagement process - to identify and analyse any areas of IRMF that can be improved.

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Efficiency Diagnostics
Risk & Hedging Analysis
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Adda IQ 1.0

Adda Risk Management (ARM) is our proprietary system which through the user interface, allows clients to measure and manage market risks more effectively. The platform uses proprietary algorithms to evaluate client exposure and determine the most appropriate and cost-effective hedging programmes according to risk appetite, market conditions and financial objectives. Key benefits include:

  • Visual and fully interactive system, supported by professional advisors

  • Advanced Value at Risk quantification across multiple asset classes 

  • Monte Carlo simulations and scenario analysis for empirical led decision making

  • Evaluate existing hedge strategy performance and comparison with alternatives

  • Independent solution - prevent biased/less objective bank or broker hedge recommendations

Execution advisory 

Audere tenders its clients’ execution requirements. This ensures best execution on all product classes and reduces the operational process and counterparty risk. We also support with the collation of legal information and the negotiation of term sheets during new credit approval processes.


Our tenders are open to a client’s existing liquidity providers, tier 1 global banks, non-banks and several prime brokers.


By tendering liquidity access, we can ensure clients access best execution in pricing and credit terms.

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Execution Advisory
Performance Reporting

Sectors

We are forever innovating to ensure our service meets the needs of our clients in ever-changing market and regulatory environments. Our evolving capabilities offer clients across three core sectors the opportunities to innovate, save money, and create tangible efficiency gains.

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Asset Management
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Private Equity
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Corporates

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