Atria Consulting Ltd

In the post-2008 world, the world's regulators have decided to deleverage the global derivative markets by introducing regulation which effectively forces all market participants to clear their derivatives through organised exchanges. Dodd-Frank in the US and EMiR in the EU, together with the "polite" contribution from Basel III and MiFiD I & II, have effectively forced the clearing of all derivatives.

Regardless of their numerous advantanges, such as minimisation of counterparty risk and limited leverage, many companies have found themselves cut-off from this "brave new world".

At Atria Consulting, we are helping our clients to gain access to these markets and comply with the latest regulations. Be it exotic commodity derivatives (FFAs, iron ore, coal, bunkers) or more established products such Interest Rate and Credit Default swaps, we can help our clients manage their risks and derivative exposures effectively.

An effective hedging strategy can contribute to reducing the volatility of a company’s financial results, which in turn reduces a company’s risk premium. We can already see that the ability to manage foreign exchange, interest rate and commodity price risks increases value and gives companies a level of economic stability, even at times of great volatility.

With specific regard to shipping risks, we recognise that many owners and operators believe that shipping is all about risk management; these counterparties are willing to participate in the shipping derivative market by taking positions, effectively doubling up their physical exposure. For this group of clients, we can advise them on their trading strategies, help them establish  adequate trading procedures and stop-losses mechanisms, organise and improve their back-office functionality and generally help them manage their FFA exposures.

In today's challenging banking environment we recognise that many of our clients find it hard to raise debt capital.

Utilising our extensive experience with various types of credit committees, we can provide our clients with an insight of their way of thinking and where possible, "reverse-engineer" the business proposals with the aim of obtain credit approval and overcoming the issue of "paralysis by analysis".

Our services include:

1. Financial analysis
2. Cash flow and liquidity management
3. Loan/debt negotiations
4. Loan/debt restructuring

We can help our clients complete their due diligence process before acquiring a stake into a company or invest in a investment product (such as hedge fund, PE, etc).

 For companies:

1. ask certain key questions, including, how do we buy, how do we structure the deal and how much do we pay?
2. An investigation of current practices of process and policies.

 For investment products:

1. in-detail review of the fund's activity to ensure it is in compliance with its prospectus.
2. understand whether a specific fund will meet the client's investment horizons, risk tolerances and investment strategies.

Credit Risk Management (together with OTC clearing), turned out to be the main winners of the 2008 crash in the global markets.

Credit risk is everywhere and with different forms. It could be caused by the bankruptcy of a bank or a client. Or that a counterparty does not fulfill its obligations. Or even that an adverse econonic event could trigger a lower rating causing a technical default.

In any case, we help our clients to establish systems and procedures which adequately analyse, measure and evaluate counterparty risk.