As we look at the issues of hedging and managing the risk around new bespoke underlyings, several bankers provide further insight into what to look for.

What are the main considerations when choosing proxy hedges? Patrick Kondarjian, global co-head of ESG sales, HSBC It really depends on the nature of the underlyings. If you take ESG, for example, the way some of these indices are built is to minimise the tracking error. There are two things to look for. The primary approach is to use a proxy for part of your hedge - Patrick Kondarjian, HSBC One is the impact metrics, or how much you improve your ESG metrics (such as carbon footprint or ES