Under the rules of fair value hedge accounting, a prerequisite condition is that the hedge should be highly effective in offsetting this specific value change – i.e., the value cha...

To illustrate, consider a simplified example where a bank relies on monthly deposits as its primary funding source in connection with its holding of a new, two year fixed-rate asse...

A fairly common reason that shortcut treatment is denied, particularly if the swap happens to be a seasoned instrument at the time the hedge designated is initiated, is that the sw...

A forward contract is a principal-to-principal transaction that commits the counterparties to exchange some underlying property at a given price on some agreed upon, forthcoming ex...

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