Our team has more than 67 cumulative years of industry experience managing hedging transactions on both the buy-side and sell-side and has executed more than $1.5 trillion gross notional in derivative transactions while at Hudson across FX, interest rate, and commodity markets.

We have deep expertise in developing and implementing: fund-level FX hedging programs, and interest rate, FX, and commodity hedging strategies within operating companies and special purpose vehicles; and sign-to-close, deal-contingent hedging.

In addition to market risk management advisory and hedge execution, we provide our clients with valuation and reporting infrastructure that would otherwise be costly and difficult to build in-house, including models to determine exposures before and after trade implementation; customized reporting through Microsoft Power BI; and ongoing monitoring and reporting to a client’s specific needs.

On behalf of the Lone Star Funds, Hudson has underwritten and asset managed more than $134.8 billion of unpaid principal balance of U.S. residential assets (including residential whole loans, RMBS bonds, and CDO bonds) that have been acquired by affiliates of certain of the Lone Star Funds since 2008. In connection with these assets, Hudson has overseen the successful execution of active asset management strategies to maximize investment value, including collapsing CDO structures and intensive servicing of non-performing residential loans.

To support the efficient financing of mortgage and consumer debt assets, Hudson, together with Lone Star, has a history of developing and launching inaugural asset-backed securitization solutions. Following the Great Financial Crisis (GFC), in 2009, Hudson, together with Lone Star, developed the industry’s first post GFC RMBS financing of non-performing, re-performing, and second-lien mortgages. In 2014, Hudson, together with Lone Star, launched a shelf to provide term financing to certain RMBS and ABS bond portfolios. Further, in 2015, Hudson, together with Lone Star, developed the first post-GFC securitization of non-agency and non-QM mortgage collateral (outside of the “prime jumbo” loan space). As of 1Q 2021, these three shelves comprised more than 174 completed securitizations and more than $60 billion of ABS debt sold.

Outside of typical securitization markets, Hudson also has unique experience structuring customized financing vehicles for illiquid investment assets, including middle market levered corporate loans and short-term consumer loans. These customized financing solutions have provided our clients with a structural market advantage.