Securities & Finance
Derivatives, Risk Management, and Hedging Strategies

The Brattle Group provides consulting and expert testimony on the theory, valuation, use, and regulation of derivatives. The Brattle Group’s staff and affiliates include professors and former practitioners in risk management and derivatives; specifically: a Nobel Prize winning economist, a former director of risk management at a large broker-dealer, and an author of a leading graduate level textbook on risk management and derivatives. We regularly work in collaboration with industry experts including former traders, risk managers, and compliance professionals.

The range of derivatives instruments we are retained to analyze and value is wide and can be originated and traded a number of different ways: exchange-traded like a futures contract, over-the-counter as a counter party’s obligation (such as a swap), publicly offered as a trust-issued claim against the trust’s own assets like a collateralized mortgage obligation (CMO), or a hybrid instrument such as a synthetic collateralized debt obligation (CDO) sold as a 144A private placement. Our analysis often concerns how derivatives were used and whether for reducing financial risk through hedging or for taking risk as part of an investment strategy. The Brattle Group experts analyze the economic value and performance of instruments in terms of the underlying assets, payment conditions, and trading venue. They also evaluate suitability and performance of derivatives whether used as investments or to hedge.