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Independent Hedge Portfolio Strategy & Risk Advisory

FTI Consulting (“FTI”) provides comprehensive, independent hedge analysis and risk management services for companies navigating complex market, liquidity, and balance-sheet challenges. Our multidisciplinary team delivers sophisticated valuation, restructuring, and strategic risk management solutions that enhance decision making and strengthen financial resilience.

Our services include:

Hedge Portfolio Valuation & Analysis: We perform detailed valuation and risk assessments of derivatives hedge portfolios, providing real-time insights into portfolio effectiveness and protection levels across various pricing scenarios.
Hedge Book Restructuring: We support clients in restructuring hedge portfolios during financial distress -reviewing counterparty proposals, negotiating favorable terms, and developing capital-efficient solutions aligned with liquidity needs and lender requirements.
Risk Management Framework Development: We design comprehensive risk management policies and hedging strategies following industry best practices, and creating flexible frameworks that accommodate business growth and changing market conditions.
Monetization Strategy & Execution: We assess monetization options for hedge books, determine realizable value, and oversee trading execution to ensure optimal outcomes during restructuring events.

Our recent engagements showcase the breadth of FTI Consulting’s hedge and risk management capabilities across industries. Clients rely on our trader-level, independent analysis to assess exposure, value, and strategic options — typically available only to commodity trading desks or broker-dealers.

In a landscape defined by volatility and financial pressure, FTI Consulting’s independent expertise enables companies to protect value and manage hedge exposures effectively.

Case Studies

Oil and Gas E&P: Hedge Book Analysis, Monetization and Restructuring
FTI Consulting team performed the valuation and risk analyses of the derivatives hedging book of a U.S. oil and natural gas E&P company and advised a bank lender of the company on the partial unwind and subsequent restructuring of the hedge book. .

European Airline: Hedge Book Analysis and Restructuring
FTI Consulting team advised a European airline facing a liquidity crisis in 2020 due to a decline in travel and losses in the restructuring of its jet fuel derivatives hedge portfolio .

Risk Management Framework of a Renewable Energy Platform
Our team of experts assisted a leading global renewable energy platform (the “Company”) developing its risk management framework and establishing a new comprehensive hedging program.