The Trading Floor with David Axtell

A pension fund hedges perfectly on Monday. By Friday the assets have risen and the fund is under-hedged without anyone placing a trade. Currency hedging is a position that drifts.How asset-manager FX hedges drift with NAV; hedging the exposure that exists today; and why a static hedge is not a completed event.The Trading Floor with David Axtell — Season 2: Cross-Currency Swaps and Basis Trading.This season draws on Cross Currency Swaps and Basis Trading by Luigi Pascal Rondanini and David Axtell, published by Rondanini Publishing on 15 December 2026 (Foreign Exchange Markets Professional Series).Hosted by David Axtell. Rondanini Publishing Ltd.

Issuing in a strong local market and swapping back to dollars often looks cheaper on the headline coupon. Comparing those two coupons is almost always the wrong comparison.The issue-and-swap decision; what the right all-in comparison actually is; and the funding, basis, and credit items treasurers miss when they shop the coupon.The Trading Floor with David Axtell — Season 2: Cross-Currency Swaps and Basis Trading.This season draws on Cross Currency Swaps and Basis Trading by Luigi Pascal Rondanini and David Axtell, published by Rondanini Publishing on 15 December 2026 (Foreign Exchange Markets Professional Series).Hosted by David Axtell. Rondanini Publishing Ltd.

If your counterparty on a cross-currency swap defaults tomorrow, the mark-to-market is not what you lose. In a portfolio of any size that instinct can be wrong by a very large margin.How to measure exposure rather than a single MTM; why exposure grows and shrinks over the life of the trade; and how initial margin and potential future exposure actually work.The Trading Floor with David Axtell — Season 2: Cross-Currency Swaps and Basis Trading.This season draws on Cross Currency Swaps and Basis Trading by Luigi Pascal Rondanini and David Axtell, published by Rondanini Publishing on 15 December 2026 (Foreign Exchange Markets Professional Series).Hosted by David Axtell. Rondanini Publishing Ltd.

The Swiss franc shock of 2015 and the COVID dislocation of 2020 show what happens when market moves overwhelm standard assumptions. The season closes with stress testing, tail risk and the evolution of modern FX derivatives practice.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 30 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.

A cross-currency swap carries a live FX exposure from day one. The largest piece of it is the present value of the final principal exchange, and it moves your mark-to-market every day — not only at maturity.Where FX delta actually lives in the trade; why an FX-delta label is incomplete until you state how the curves were treated; how to measure rates-FX cross risk by joint repricing; and the residuals left by spot, forward, and option hedges.The Trading Floor with David Axtell — Season 2: Cross-Currency Swaps and Basis Trading.This season draws on Cross Currency Swaps and Basis Trading by Luigi Pascal Rondanini and David Axtell, published by Rondanini Publishing on 15 December 2026 (Foreign Exchange Markets Professional Series).Hosted by David Axtell. Rondanini Publishing Ltd.

A model can be coded correctly and still create material risk. This episode covers assumptions, calibration, validation, reserves and the governance needed when simplified models meet real markets.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 29 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.

Carry and currency-overlay strategies can produce long runs of small gains followed by sharp losses. This episode explores crash risk, skew, tail hedging and the hidden shape of return profiles.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 28 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.

Market makers price more than volatility. Client behaviour, inventory, liquidity and adverse selection all influence a quote. This episode explains how dealers interpret and manage flow.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 27 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.

A hedging programme is more than a single trade. This episode looks at policy, layering, target redemption structures, governance and the danger of allowing cost reduction to become speculation.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 26 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.

Zero-cost corporate hedges are financed by giving up value elsewhere. This episode examines participating structures, collars and the trade-offs treasurers need to understand before signing.This episode is part of FX Options Daily, a 30-day themed season of The Trading Floor covering pricing, hedging, exotics, risk and institutional FX options practice.Full treatment: Chapter 25 of FX Options.Educational content only. Nothing in this episode constitutes investment advice.