Hedging Demand

Hedging Demand

Demand or orders for securities that are used to diversify or otherwise reduce risk beyond normal mean-variance diversification. Hedging demands represent a desire for a risk-averse portfolio. See also: Risk analysis, Modern Portfolio Theory.
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In addition, ICBC designed tailored products and innovative functions to meet customers diversified hedging demand.
However, hedging demand from IT sector, pushed it back up towards 60.
This is particularly the case since the financing of the hedging activity may itself generate domestic currency appreciation that in turn generates further hedging demand.
In other words, the current financial-settlement derivatives used in the maritime industry are not sufficient for hedging demand uncertainty in the trucking industry because those derivatives are operated separately from the physical shipping markets.
Futures hedging demand are presented with respect to a representative hedger who needs a long hedging to avoid risks from price changes, and the effects of the normality restriction and its relaxation on the estimated hedge ratios will be emphasized.
The solution corresponds to a speculative demand and a hedging demand.
In general, the size and sign of a hedging demand depend on risk aversion and horizon and, thus, will be different for different investors.
NEW YORK & LONDON -- BofA Merrill Lynch Global Research has introduced the Global Financial Stress Index (GFSI), a comprehensive, cross-market gauge of risk, hedging demand and investment flows.
In one respect, however, the hedging demand from the asset management sector was more sensitive to market conditions than for the export sector in Korea.
However, dealers' hedging demand could be significant relative to the size of the markets.
Reports produced by companies such as ICIS Heren are extremely important to the wider market, as benchmark prices are based on these generated independent average prices and could cost or save companies millions of pounds when they buy or sell to meet hedging demands or to physically stock their energy requirements.
In particular, the desire to hedge changes in term premiums generates large hedging demands for long-term bonds.