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
The New World Under FAS 133: Cross-Currency Interest Rate Swaps
Without question, the adoption of FAS 133 will have an impact on the way firms use derivatives. One application that will certainly be affec
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