Background Review

Preceding any hedging recommendation, JCRA undertakes to review and understand the key elements of the financial model and business objectives, including:

• Business vision and strategy
• Cash flow model
• Risk exposures
• Sensitivity of model to variances in budgeted rates
• Debt facilities and associated covenants
• Net debt and gross debt forecasts
• Other management and board level concerns.

Advisory
After equipping ourselves with the necessary knowledge and information on the core elements outlined above, we will proceed to look at various hedging strategies which we deem to be appropriate according to the identified objectives as well as prevailing market conditions with respect to the pricing/costs of those strategies.

Reporting
JCRA reports to the client in written form, clearly demonstrating our understanding of the background. The report identifies the hedging strategies which we deem to be appropriate for the circumstances. A full discussion of the advantages and disadvantages of each of the strategies is presented, followed by a recommendation of our preferred solution and the rationale behind it. The application of the preferred strategy will be illustrated on the client's positions to show how the hedging would work in practice.

Pricing/Benchmarking
Post the hedging decision being made, JCRA's specialist pricing team will provide updated market pricing on the chosen strategy. This benchmarking process ensures that all elements of the transaction are identified with the providing bank prior to implementation. This independent validation of pricing ensures the client gains transparency and reassurance that a fair price has been achieved.

We are happy to implement the strategy on behalf of the client.

Documentation
JCRA ensures all appropriate ISDA documentation is in place and terms are aligned with other banking documents.

We also check all ensuing documentation post completion to ensure pricing and profiles are accurate.

Valuations
JCRA offers a regular valuation service, providing clients with the necessary information for their audited accounts, or simply for internal control purposes.

Post Transaction Service
JCRA's focus on building long-term relationships means the service continues post implementation. Clients have full access to valuation updates and general information regarding financial markets and the key data impacting trends.

We also regularly review hedging strategies, ensuring they remain valid as the business model evolves and the financial markets change.