This classic management methodology does not allow, despite the good allocation of assets, to undergo sudden price drops and thus leads to a strong depreciation of assets . The generalization of asset management using firm and conditional commitment derivatives, which is often called alternative management but which in reality is the management of financial risks, is more appropriate in a volatile world. This sustainability of company valuations in a world of fantuan database volatile exchange rates, shares and raw materials is effective thanks to this appropriate management. This takes the form of derivative vehicles often packaged for sale to corporates in so-called structured products. Such management makes it possible to avoid being subject to strong market variations and to preserve valuations. This is the prerequisite for sustainable finance which makes it possible to protect companies and their assets and liabilities from depreciation.
and the foreign exchange market gave the impression of no longer having any volatility (they fell to 5%). But suddenly the Euro vs. Dollar rate went from 1.10 to 1.14 and stock prices collapsed . Today, this unpredictable economic movement has put an end to the status quo. The reawakening of volatility reminds us of the urgent need for companies to manage their financial risks, that is to say the potential losses linked to sudden variations. Derivatives of firm and conditional commitments are an appropriate response, as long as the compliance of the management rules framed by compliance is strictly respected. This is the real challenge of financial management for companies in the coming decade.
Thus, naively, the stock market was only rising
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