Foreign Exchange and Derivatives

Shinsei Bank offers a variety of services to address the foreign exchange and interest rate fluctuation risks of its customers. These include basic services such as forward exchange contracts, overseas remittances and the raising and management of funds at fixed interest rates. We also provide the direct provision of relevant market information and various hedging measures through our highly-experienced customer dealers.

Additionally, we can also provide customers with numerous hedging structures that incorporate swaps, options, and other derivatives. By utilizing the flexibility of derivatives, we are able to create customized schemes that satisfy the business stabilization needs of our customers.

Derivatives for hedging exchange risk

Once we have developed a deep understanding of the needs of our customers' businesses, including business activities and future plans, we analyze existing hedge portfolios from multiple angles, in order to be able to design and provide hedging schemes that provide the highest added value for our customers.

Derivatives for hedging interest rate risk

We provide our customers with interest rate risk hedging solutions that utilize interest rate swaps as well as interest rate caps and floors as a means of hedging the interest rate fluctuation risk that they may encounter in financing and managing funds.

As globalization progresses, there has also been an increase in the number of cases of cross-currency swaps between foreign currencies and Japanese yen being utilized.