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
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
Hedging Currency Exposures by Multinationals: Things to Consider
For something that is so fundamental to international commerce, it is astounding how much confusion exists about managing currency risk. For
Interest Rate Swaps: Accounting vs. Economics
Although accounting rules undergo virtually ongoing review and adjustment, the genesis of the current framework is Statement of Financial Ac
Incorporating Prepayment Risk Considerations When Making Hedging Decisions
This article describes the basic framework for measuring interest rate risk at financial institutions and focuses attention on problems asso
FAS 133 Hedge Documentation: Points to Consider
If your bank and/or your customers are just starting to use derivative contracts for hedging purposes, you’re likely to find the accounting