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
Ten Peaks Coffee adoption of hedge accounting results in higher earnings for 2016
Having just implemented hedge accounting beginning on January 1, 2016, Ten Peaks quickly realized several benefits including less volatility
Derivatives' Valuations: Assessing Alternative Methodologies
The idea of valuing a derivative is reasonably straightforward, but the devil is in the details. The first concern is the notion of fair val
Hedging Loan Commitments
With this orientation, the bank would typically seek to hedge all or a portion of the uncertain funding costs that would be expected to aris
Designing A Proper Hedge: Theory Versus Practice
The article challenges conventional wisdom as to the form of the regression. Specifically, the traditional text book solution performs a reg
Hedging the Hedge: How Treasurers Can Decide How Much to Hedge
The benefit of derivatives shouldn’t be measured by the profit that they generate, but the possible trouble that they can avoid.
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...
Implementing a Hedging Program: Building a Dashboard
With varying degrees of precision depending on the circumstances, futures, forwards and swaps serve to “lock in” prices that would otherwise
Hedge accounting as confidence measure in Central and South America
From recent news in Central and South America: "In response to Itau’s claims, CSN said its debts in USD are ‘totally protected’ against...
Energy XXI restates financials due to poor hedge accounting
Another day, another financial restatement due to poor hedge accounting: “The primary reason for this derivative accounting change was...
