Why a basket

Single hedges leave gaps

Buying one FX forward against revenue currency ignores the commodity and freight risk sitting upstream in your cost base. Buying a commodity future on its own ignores the currency the supplier actually invoices in. Each hedge bought in isolation covers one slice of the exposure and leaves the rest exposed.

A basket sizes each instrument against the exposure it's meant to offset, and accounts for how those exposures move together, so the combination tracks your real risk rather than a single piece of it.

Instruments

What can sit inside a basket

InstrumentUsed for
FX forwards & optionsFor currencies tied to supplier invoices and revenue.
Commodity futuresFor raw materials embedded in cost of goods.
Freight & fuel swapsFor logistics cost tied to specific routes and carriers.
Interest rate instrumentsWhere financing terms attach to supplier or customer contracts.

Maintenance

Rebalanced as your supply chain changes

A new supplier, a rerouted shipment, a renegotiated payment term - each of these changes the exposure the basket was built to hedge. We review and rebalance the basket as your supply chain moves, rather than treating the hedge as a one-time purchase.

Get a basket built for your exposure

Share your supply chain and we'll come back with what a basket would look like.

Talk to us