News

Recent Articles

29th June 2015
Whatever it Takes

The newspaper headlines over the weekend have left many with the impression that a Grexit is imminent. Indeed, after all the ‘hints’ in recent weeks: the IMF saying that a Grexit is a possibility (28 May), Cameron preparing plans for Grexit, and finally the overall ultimatum style of negotiations, – one could be forgiven for thinking that Greece will be using drachma tomorrow.

 

Quick recap. The EU proposed a deal involving more austerity in return for a more financing, but the Greek government found the demands outrageous and called a referendum for July 5 for or against the package. Capital controls were introduced today, with individuals allowed a maximum cash withdrawal of EUR60 a day. Senior European officials are making verbal interventions and calling for lifting capital controls as soon as possible and keeping Greece in Eurozone.

 

We do acknowledge that the probability of a Grexit has heightened. Negotiating with Greece has...



more >
22nd June 2015
The (FX) Theory of Relativity

"Despite the soft first quarter, the fundamentals underlying household spending appear favorable and consumer sentiment remains solid. Looking ahead, the Committee still expects a moderate pace of GDP growth, with continuing job gains and lower energy prices supporting household spending."

 

Janet Yellen

Fed Chair

June 17, 2015

 

 

The US dollar touched a four month trade-weighted low last week, the euro remained towards the upper end of its recent range, and the British pound was the top performer of the world’s major currencies, jumping about 2% against the dollar.

 

These moves came against the backdrop of an improving assessment of US economic fundamentals by the Federal Reserve and hints that rates may rise this year after all, the increasing level of speculation about an imminent Eurozone breakup due to the Greek crisis, and not much of anything happening in the UK (apart from some decent retail sales figures and a jump in average earnings).

 

On the surface,...



more >
15th June 2015
Another Greek Tragedy?

 

Picture 1

Photograph taken by Validus account executive Andriana Goudis at a Greek restaurant in Bristol (UK)

 

“Over two decades we destroyed our production capacity and industry.  In the first decade of this century, after entry into the EMU, we could also excessively borrow at low rates, and we did.  As a result, we became a country of importers – while we received the money from the EU with one hand we did not invest with the other hand in new and competitive technologies.  Everything went into consumption.  The result was that those who produced something closed their factories and opened import companies because they could make more money with this.”

 

Michalis Chrysochoidis

Former Greek Minister of Economics

February 2012

 

 

It was not a particularly good week-end for the Greeks.  The national football team was beaten 2-1 by the Faroe Islands (population 49,500), consigning the 2004 European champions to the bottom of their qualifying group for the...



more >
Older Entries >>>

 

White Papers


 

FX Hedging:

10 Common Pitfalls

Download> 

Commodity & FX Risk:

An Integrated Approach

Download> 

The Corporate Use of Credit Derivatives:

Where Next?

Download> 

Corporate Hedger’s Guide to Basel III

Download>

Currency Volatility – Are markets nearing an inflection point?

Download>

Testimonial

Private Equity

 

 “The Validus team understand how private equity thinks about financial risk management issues and they are rigorous in the way they help our portfolio companies to understand and mitigate their risks.”

 

James Markham, Partner – Portfolio Management, Graphite Capital LLP

Testimonial

FX and Commodity Risk

 

“Validus provides us with independent strategic advice relating to our long-term currency and commodity risk management program.  The people are extremely capable and collaborate very well with our finance and operations teams here at JD Irving.”

 

Mark Bettle, Director, J.D. Irving Ltd.

Testimonial

Commodity Risk

 

“Validus worked with us to develop a comprehensive commodity risk management programme – their analysis was both insightful and actionable.   We particularly value their independence, and they continue to work alongside our internal team to ensure our commodity price risks are managed effectively”


Gerry Gray, Finance Director, Strix Ltd.


Testimonial

FX, Commodity & Interest Rate Risk

 

“Validus comes up with risk management solutions that are innovative and comprehensive but practical to implement, that is their strength compared to other consulting companies we have worked with in the past.  Validus provided valuable insights into how FX, interest rate and commodity risks impact our organisation, and provide actionable recommendations and solutions.”

 

Andrew Ayres, Finance Director, U-POL Ltd.

Recent Comments