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
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
Basic Strategies for Managing U.S. Dollar/Brazilian Real Exchange Rate Risk for Dollar-Denominated I
Brazilian Real futures and options on futures at Chicago Mercantile Exchange offer a host of risk management strategies appropriate for thos
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