— 'Successful' hedging is just a coin flip
Bank swaps are great — when the market moves in line with your hedge. But guess wrong, and you lose.
That's why a 50% chance isn't good enough, when your cash flow's at risk.
And zero-cost collars — the other bank solution, can be even worse. You can lose when the market goes up and when the market goes down. Just ask the airlines.
But if your strategy is guessing the market, research can help. Right?
Don't bet on it, either.
— Or gurus and their predictions. Because risk is an 'unknown' and often extreme. Think covid-19.
So something's got to give, because the process isn't working.
This is why Lazar stepped up, and decided to change the game.
Because hedging shouldn't be about luck.