As most people know, the end of LIBOR is coming – its use is set to be phased out by 2021. With diverse applications ranging from municipal bonds to credit cards, LIBOR is the most...

Last June, Blue Rose published an article discussing the troubles facing LIBOR and introducing the rate currently pegged to replace it – the Secured Overnight Financing Rate (SOFR)...

The issue gets a little more complicated when interest swaps are introduced into the equation. Interest rate swaps can be used to convert variable rate funding synthetically to fix...

As an example, Exhibit 1 compares the fixed rates on five-year swaps transacted on the first of December 2008 and, for comparative purposes, a five-year issued a year earlier on De...

Although accounting rules undergo virtually ongoing review and adjustment, the genesis of the current framework is Statement of Financial Accounting Standards (FAS) No. 133, Accoun...

Shortcut accounting treatment assures that the same income effects will be reported as those that had previously been termed synthetic instrument accounting. That is, when swapping...

While interest rate swaps and strips of eurodollar futures can serve as substitutes for each other, use of futures necessarily fosters some degree of uncertainty with respect to th...

The most frequently used interest rate derivative is the interest rate swap, and when used in it’s most common application — to swap from variable interest expenses/revenues to fix...

The Financial Accounting Standards Board (FASB) only recognizes hedges as being ineffective for accounting purposes when the hedge gains or losses exceed the effects of the underly...

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