Advanced trading technology
A wide variety of products
Extensive market insights
Ability to customise solutions
Managing foreign exchange risk
The first time that clients deal with the Markets Division is often to lock in the rand value of their imports or exports to gain certainty about the related import costs and export revenue. This can be part of a spot transaction (for immediate settlements) or transactions to be settled on a future date (for example monthly settlements over a year or transactions that are three months into the future). A related service that CIB offers is obtaining exchange control approvals from the South African Reserve Bank on clients’ behalf.
Managing cash balances
Clients who receive income from exports that have been switched into rands may want to place them in a deposit. This is done by the Money Markets Team, which seeks to maximise the yield clients can earn on cash that they do not need immediately. Clients can put funds in a deposit overnight or for five years or longer.
Managing interest rate risk
Clients who have taken out loans are exposed to interest rate movements. We help them manage this risk using insights from our experienced and highly rated Economics and Research Team. Through our Structured Sales Team clients can convert their floating-rate loan to a fixed-rate obligation or from a fixed-interest-rate to a floating-rate obligation. Similarly, a client who earns income that is linked to inflation might prefer to have their debt repayments inflation-linked as well. The Structured Sales Team can structure an inflation swap to change normal floating-rate or fixed-rate loan repayments into inflation-linked repayments.
Managing commodity risk
Commodity producers or users of precious metals, base metals or oil and its derivatives such as petrol or diesel can also hedge their exposure to foreign exchange risk through swaps or options with the help of the Structured Sales Team. A gold producer might hedge the rand value of some of their production by entering into a string of monthly swaps that match the export value of 5 000 ounces each month for the next 12 months. Similarly, a large logistics company may hedge their diesel bill for the next two years by entering into a swap with Nedbank where they commit to paying a fixed cost for a fixed number of litres of diesel each month.
Managing equity risk
The Structured Sales Team can also help listed corporates hedge the cost of the share options that they issue to employees or even put a floor under the value of listed stakes that they hold in other listed companies. Our equity solutions are also extensively used by financial institutions like asset managers and insurance companies to protect the value of their equity investments and benefit from the limited downside risk and geared participation in equity gains.
Managing credit risk
The Structured Sales Team can give financial institutions access to credit assets to diversify their investment portfolios and provide higher-yielding assets, which is important when considering that most of the assets that they manage are pension funds.
Buying and selling equities and bonds
Financial institutions can also use our Flow Sales Team to either buy or sell listed equities and bonds. While our Investment Banking Team is mandated to list shares in new companies, buy back shares for companies and sell newly issued bonds for corporates, our Flow Sales Team also executes these transactions.
Our CIB trading options
Enhanced yields. Managed risk. This is what our Commodities Trading team offers your business.
- A wide range of commodities
- Access to physical grain carries
- Reduced risk
Nedbank CIB’s strength in equities is evident across everything from research to sales to local and international trading.
- Access to innovative solutions
- A client-centric approach
- Full range of services
Leading linear and non-linear derivative products meet vast local and global expertise in our fixed income trading services.
- Specialists with extensive experience in BEE principles
- Continual portfolio optimisation
- Tailored solutions
Every client has unique needs. That’s why developing unique forex risk strategies for our clients is a top priority.
- Cost-effective risk management
- Practical support and advice
- Highly qualified industry specialists
Our intelligent credit risk management gives your business unique risk-return characteristics and portfolio diversification.
- Wide range of capital market products
- Highly experienced credit team
- Specialists with extensive global financial market knowledge