DC Tariffs: Hedging Returns
- The deal contingent (DC) hedge market is experiencing a resurgence after a slump triggered by former President Trump's tariff policies, which created widespread economic uncertainty and a drop...
- Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS, noted the shift.
- Industry observers will be watching closely to see if this renewed activity in the deal contingent hedge market sustains it's momentum,providing a more stable surroundings for mergers and...
Deal Contingent Hedge Market Recovers After Tariff Uncertainty
Updated May 27, 2025
The deal contingent (DC) hedge market is experiencing a resurgence after a slump triggered by former President Trump’s tariff policies, which created widespread economic uncertainty and a drop in public merger deal activity.
Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS, noted the shift. “The tariff discussions and news flow saw a lot of timelines pushed out, but I feel deals are coming back in now, and we’re getting quite a lot of inbound requests of substantial size,” Carroll said.
What’s next
Industry observers will be watching closely to see if this renewed activity in the deal contingent hedge market sustains it’s momentum,providing a more stable surroundings for mergers and acquisitions.