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
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...
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
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
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
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