Profile

In a world of low interest rates and highly correlated asset markets, a key determinant of business success is the successful management of foreign exchange risk.

Regardless of whether your business is involved in underlying trade-based transactions, cross-border investments, or more speculative enterprises, your risk management processes are essentially the same: 1) assess your underlying exposures, 2) assess the likely risk impact of exchange rate fluctuations on your income statement and/or balance sheet, 3) formulate a hedging, risk management or exposure strategy, and; 4) execute that strategy. Redward Associates Limited can assist you in this process by providing general market intelligence, aimed at improving your understanding of the forces that drive currency fluctuations, risk factors that surround exchange rate movements, and their interaction with market pricing. Our advisory service is aimed at wholesale market investors, is license fee-based, unbundled from the provision of transactional services, and free of agent commission.

Our specialist focus is Emerging Asian foreign exchange markets. At present Emerging Asia comprises around 28% of global GDP (at Purchasing Power Parity) but only around 6-7% of foreign exchange market turnover. Over the coming decade, this picture is likely to change dramatically. The rise of China, India and Indonesia will continue to propel an increase in the share of global economic activity emanating from Emerging Asia, while at the same time, capital market liberalization, and increasing exchange rate flexibility will see an ongoing rise in regional FX market turnover, both in absolute terms, and as a percentage of global turnover. Moreover, these forces will likely propel an increase in exchange rate volatility and commensurate increase in business risk exposure to exchange rate fluctuation.

Redward Associates Limited is led by Peter Redward. Peter’s interest in foreign exchange markets dates back to the late 1980’s and was a key motivator for his decision to study economics. Peter brings 17 years of experience to the company, having worked for leading sell-side and buy-side institutions as well as being a former policymaker at the Reserve Bank of New Zealand. Peter has been involved in Asian foreign exchange markets since 2000, and is a widely known figure in Asian financial market and policy making circles. Prior to founding Redward Associates Limited, Peter was Head of Emerging Asia Research at Barclays Capital.

Peter Redward
Principal