HedgeStar Marketing
Dec 6, 20165 min read
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, 20166 min read
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, 20147 min read
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, 20137 min read
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, 20115 min read
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, 20117 min read
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, 20105 min read
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, 20097 min read
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, 20095 min read
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, 20057 min read
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