MFX Product Pricing
MFX will base its pricing on the terms and price at which it can re-hedge its own risk with TCX or a commercial bank, plus a small spread to cover operational costs.
MFX will not require collateral from its MIV clients that meet minimum credit standards. This removes a major barrier for many lenders who cannot afford to tie up liquidity in order to hedge their currency risk. It also vastly simplifies the hedging process. Even though MFX requires collateral from MFIs, the conditions are more favorable than other companies’ supporting hedging opportunities in the microfinance sector. Please visit our Education Center to read more about the costs of collateral for hedging microfinance loans.
To receive a quote on a cross currency swap please contact us.