HedgeStar provides valuation, fair value, and hedge accounting services for all types of financial instruments denominated in all of the major world currencies. Below are categories of various financial instruments and summaries of our coverage.
HedgeStar provides valuation expertise and accounting support for all types of alternative investments and other complex, illiquid securities. We have extensive experience serving corporate, financial, insurance, and pension fund clients, as well as non-profit entities such as endowments and foundations. Our clients depend on us for accurate ASC 820 (FAS 157) fair value measurements. We stay well-informed of ever-changing accounting standards and continually update our services and methods to help our clients deliver more transparency in today’s markets.
Bonds & Loans
HedgeStar provides full service support to all types of entities that need fair values for their issued debt or require valuations on bond investments or loans. We value all types of fixed and floating rate bonds and loans using market standard pricing methodologies that have been accepted by audit firms worldwide.
Our valuation and accounting services cover all categories of commodity hedging including metals, soft commodities, grains, energy, and livestock. Our comprehensive pricing models allow us the flexibility to model all of the common commodity instruments as well as over-the-counter structured hedges.
Credit Default Swaps
HedgeStar provides valuation and accounting support to entities that utilize credit default swaps either as protection against a credit event or to create an income stream. We value all types of credit default swaps including single name and basket structures. Accounting firms worldwide have reviewed and validated our methodology and process for determining fair value.
HedgeStar provides valuation and accounting support to entities that utilize equity derivatives as a way to manage the risks related to investing in equities in the global marketplace. HedgeStar provides valuation services for all types of equity derivatives including American options, European options, collars, futures contracts, warrants, convertible bonds, forwards, and swaps.
HedgeStar provides ongoing valuation, monitoring and accounting support to domestic and multi-national corporations, non-profits, and governmental entities that utilize foreign currency hedges to manage their exchange risk. We provide valuation services for all types of foreign exchange products including futures, options, forwards, and swaps. HedgeStar covers all the major currencies and can customize currency services on demand.
Interest rate hedging accounts for over 75% of hedging activity in global financial markets. Entities can hedge interest rate risk by utilizing futures contracts, forwards, swaps or options depending on the circumstances surrounding their specific needs. Many exotic products also exist in the interest rate markets. We provide fair values and accounting assistance for all product categories, including over-the-counter and exchange traded derivatives.
The precipitous fall of the mortgage-backed securities market in 2008 resulted in a market with diminished trading activity and less observable market data to validate the reported values of private label mortgage-backed security (“MBS”) holdings. HedgeStar has developed proprietary models to assess the value of these illiquid securities in conjunction with the fair value standards of ASC 820 (FAS 157).
Structured Investment Products
Structured investment products are specifically designed for cash flow needs of the investor and privately negotiated with the seller of the instrument. Some of the more common types of structured investments are Guaranteed Investment Contracts (GICs), Flexible Repurchase Agreements (REPOs) and Forward Purchase Agreements (FPAs). HedgeStar valuation experts can model the transaction specific cash flows for these instruments and provide ASC 820 (FAS 157) fair values for financial statement transparency.