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...
The Two Faces of Market Risk
It should also be clear that, as longer duration assets have greater interest rate sensitivity than shorter duration liabilities, higher int
Synthetic Debt, Repos, and Dollar Rolls
Mortgage Dollar Roll Transactions. One active category of synthetic debt is called a mortgage dollar roll transaction. The same design as de
Tactical Considerations of Hedging Currency Exposures
Speculative currency traders, for the most part, live and die on the basis of how well they can anticipate—or react to—imminent market moves
Accounting for Commodity Hedges: Hypothetically Speaking
Key Insights
To qualify for hedge accounting, derivative gains or losses must be highly effective in offsetting the full cash price changes
Evolution of Over-The-Counter Derivatives and Associated Accounting Concerns
When OTC derivatives are transacted on a bi-lateral basis between end-users and dealers, dealers quote bids and offers and end-users essenti