Assessing the strengths of a hedge fund manager
In considering the track record, the most relevant statistic should likely be the strategy’s expected return. The longer the history, the gr
10 Tenets of Derivatives - Instruments to be Used to Manage Risk
For corporate managers who are astute enough to realize that derivative instruments can be used to manage risks relating to interest rates,
Incorporating Prepayment Risk Considerations When Making Hedging Decisions
This article describes the basic framework for measuring interest rate risk at financial institutions and focuses attention on problems asso
FAS 133 Hedge Documentation: Points to Consider
If your bank and/or your customers are just starting to use derivative contracts for hedging purposes, you’re likely to find the accounting
Tactical Hedging: A Tricky Balancing Act
The prospect of losing money on a derivative position, however, should not be over-riding. Rather, prospective hedgers need to be able to as
What Analysts Need To Know About Accounting For Derivatives
Because (1) most derivative contracts had been off-balance-sheet items, lacking in transparency, and (2) the accounting treatment of derivat