HedgeStar Marketing
- Dec 6, 2016
- 5 min
Hedging with Off-Market Swaps
While this minor disparity in the effective fixed rate, ex post, relative to its ex ante anticipated fixed rate would likely justify the ass
HedgeStar Marketing
- Feb 2, 2016
- 6 min
Saving Money When Banks Offer ‘Chooser Options’
Publication: AFP Exchange PDF Version Many companies with variable-rate funding look to derivatives to transform their variable...
HedgeStar Marketing
- Aug 1, 2014
- 7 min
Comparing Apples and Oranges (and Pears)
Values for all of these three contract prices are dependent on the yield curve as of the date of the valuation, or more directly, on the con
HedgeStar Marketing
- Jan 1, 2013
- 7 min
Taking Stock – Hedging Inventories, Hedging Sales
Assuming the availability of derivative instruments relating to the goods under consideration, most hedgers (or potential hedgers) realize t
HedgeStar Marketing
- Dec 1, 2011
- 5 min
This Year’s Model – New Lending Practices and Related Accounting Concerns
The first pitfall to avoid is using a standard pay-fixed/receive-floating interest rate swap in conjunction with this loan. This plain-vanil
HedgeStar Marketing
- Jun 1, 2011
- 7 min
Switching Caps For Swaps
This lack of an initial payment does not exactly mean that the swap is free. It is not. Economists consider the cost of the swap to be an op
HedgeStar Marketing
- May 1, 2010
- 5 min
Cross hedging – X Marks the Spot
Cross-hedges may be used in financial markets. As is well known, interest rate swaps are the most common tool corporate treasurers use to co
HedgeStar Marketing
- Jul 7, 2009
- 7 min
Assessing Interest Rate Caps
Caps do work as advertised, with some qualifications. In a perfect application, the cap buyer would seek a structure corresponding with the
HedgeStar Marketing
- Mar 3, 2009
- 5 min
Free Money
The issue gets a little more complicated when interest swaps are introduced into the equation. Interest rate swaps can be used to convert va
HedgeStar Marketing
- Mar 15, 2005
- 7 min
Disciplined Hedging – Controlling Interest Rate Risk in an Uncertain World
Despite the lack of certainty, it would seem that both alternatives of leaving the swap in place or liquidating the swap suffer from the sam