What Analysts Need To Know About Accounting For Derivatives
Because (1) most derivative contracts had been off-balance-sheet items, lacking in transparency, and (2) the accounting treatment of derivat
Comparing Eurodollar Strips to Interest Rate Swaps
While interest rate swaps and strips of eurodollar futures can serve as substitutes for each other, use of futures necessarily fosters some
Accounting and Economics: Will the Twain Meet For Mortgage Originators?
nable financial analysts to understand and assess the economic health and prospects of reporting institutions. In the U.S. the Financial Acc
Hedging With Swaps
A fairly common reason that shortcut treatment is denied, particularly if the swap happens to be a seasoned instrument at the time the hedge
Documenting Interest Rate Hedges
The most frequently used interest rate derivative is the interest rate swap, and when used in it’s most common application — to swap from va
Partial Term Hedging-The Eurodollar Alternative
Futures, however, have some rather unique institutional features. First, they are traded on an exchange so that parties to a trade are essen
Impact of Accounting Rules on the Market for Swaps
The Financial Accounting Standards Board (FASB) only recognizes hedges as being ineffective for accounting purposes when the hedge gains or
Hedging Portfolios
This work-around may still be problematic in that the various hedging relationships may not all be satisfied using the same hedge effectiven
