The Fixed Income and Currencies Department of investment banks, usually referred to as FIC, brings together the interest rate and currency activities of the market divisions. Together with the Equities Department and the Commodities Department, they form the markets division of an investment bank.
While the grouping of interest rate and foreign exchange activities may seem arbitrary, it is in fact natural. Indeed, the banks’ clients, whether they are institutional investors or companies, constantly have obligations to hedge their market exposures in these two market sectors. Company CFOs have, on the one hand, hedging needs for their future financing that will be achieved with derivatives such as interest rate swaps. On the other hand, they also have hedging needs for their future foreign currency exposures, resulting from imports or exports. These are covered using products such as currency swaps.
It is with respect to these needs that FIC’s services guide these market participants in devising unique solutions tailored to their needs. These solutions are often products that use derivatives such as structured products, forwards or options to adjust the management of interest rate and exchange rate risks to the expectations of clients. The skills of our sales, research, advisory, trading and engineering teams enable us to offer a complete range of investment, financing and risk management solutions.
