HedgeStar Marketing
May 3, 20118 min read
Alternative Investments For Everyman
Prospective investors should investigate a prospective manager’s background, validate that he or she has have funds at risk in his/her progr
HedgeStar Marketing
Mar 1, 20115 min read
The Long View-First Steps in Designing a Risk Management Program
A critical consideration in setting this horizon is that companies should only seek to hedge exposures that are expected to be realized with
HedgeStar Marketing
Dec 1, 20107 min read
Derivatives Basics
Each of these contracts is a contractual arrangement between two parties, whereby each party accepts an obligation to pay the other on the b
HedgeStar Marketing
Nov 9, 20105 min read
Long-Only Commodities Add Return? That’s Bull…..
The heart of my criticism of the long-only commodity funds is that they take long positions irrespective of any consideration of the basis.
HedgeStar Marketing
Nov 1, 20103 min read
Financial Engineering 101 - How Derivative Contracts Impact Cash Flow
Both of the starting examples represent hedging applications, where the company identified an exposure and sought to mitigate its associated
HedgeStar Marketing
May 1, 20105 min read
Cross hedging – X Marks the Spot
Cross-hedges may be used in financial markets. As is well known, interest rate swaps are the most common tool corporate treasurers use to co
HedgeStar Marketing
Feb 1, 20105 min read
Say When
Any determination about the portion of an exposure to hedge is inevitably the outcome of a business judgment. Underlying this decision is co
HedgeStar Marketing
Jul 7, 20097 min read
Assessing Interest Rate Caps
Caps do work as advertised, with some qualifications. In a perfect application, the cap buyer would seek a structure corresponding with the
HedgeStar Marketing
Mar 3, 20095 min read
Free Money
The issue gets a little more complicated when interest swaps are introduced into the equation. Interest rate swaps can be used to convert va
HedgeStar Marketing
Feb 3, 20094 min read
Pricing Swaps: Once Upon a Time…
As an example, Exhibit 1 compares the fixed rates on five-year swaps transacted on the first of December 2008 and, for comparative purposes,