On April 24, 2019 Clarus Financial Technology (CFT) released an article discussing Ameribor and how it could impact the market.  

Ameribor is defined as an interest rate index...

Derivative contracts are often portrayed as the bad boys of the financial marketplace, but this characterization misrepresents most derivatives and their uses. In fact, most deriva...

As attractive as this new ratable method may be, in certain cases, it might be preferable to avoid this treatment and apply an alternative method for some cash flow hedges with opt...

New York, NY – – The American Metal Markets held their 33rd annual Steel Success Strategies Conference June 25 – June 26. Delegates from across the steel industry participate in th...

Hedge accounting is currently a leading cause of restatements of financial statements. The cost of a restatement, as well as the resulting headache, can be minimized if proper cons...

The bank effectively trades the two swaps simultaneously. We start with the consideration of the two, respective at-market swaps – i.e., swaps that have a starting value of zero, w...

Qualifying for shortcut on fair value hedges requires structuring the swap with the following features: (a) the hedging derivative’s notional amount equals the principal of the hed...

The thing about risk is that it keeps changing. Whether it’s due to ever-evolving macroeconomic conditions or firm-specific developments, a firm’s capacity to cope with change is a...

To frame the issue, we start with an appreciation that virtually all companies are in a spread business, where profit (i.e., the spread) equals the difference between revenues and...

While this minor disparity in the effective fixed rate, ex post, relative to its ex ante anticipated fixed rate would likely justify the assessment that the hedge will perform quit...

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