marketing0294
Aug 11, 20151 min read
Invesco restates 2013-2015 financials due to failure to apply ASC 815
Invesco is the latest company to restate its financials due to failure to apply ASC 815: In the fourth quarter of 2013, the company began...
HedgeStar Marketing
Jul 1, 20156 min read
Synthetic Debt, Repos, and Dollar Rolls
Mortgage Dollar Roll Transactions. One active category of synthetic debt is called a mortgage dollar roll transaction. The same design as de
HedgeStar Marketing
Apr 1, 20156 min read
Tactical Considerations of Hedging Currency Exposures
Speculative currency traders, for the most part, live and die on the basis of how well they can anticipate—or react to—imminent market moves
HedgeStar Marketing
Mar 3, 20157 min read
Accounting for Commodity Hedges: Hypothetically Speaking
Key Insights
To qualify for hedge accounting, derivative gains or losses must be highly effective in offsetting the full cash price changes
HedgeStar Marketing
Jan 1, 20159 min read
Evolution of Over-The-Counter Derivatives and Associated Accounting Concerns
When OTC derivatives are transacted on a bi-lateral basis between end-users and dealers, dealers quote bids and offers and end-users essenti
HedgeStar Marketing
Nov 1, 20147 min read
Caps: Challenging the Conventional Wisdom that Caps are Too Expensive
As a starting point, it should be understood that a cap is nothing more than a series of options (caplets), where each caplet protects again
HedgeStar Marketing
Sep 2, 20148 min read
Hedging Bank Portfolios: Framing the Issue
To illustrate, consider a simplified example where a bank relies on monthly deposits as its primary funding source in connection with its ho
HedgeStar Marketing
Aug 1, 20147 min read
Comparing Apples and Oranges (and Pears)
Values for all of these three contract prices are dependent on the yield curve as of the date of the valuation, or more directly, on the con
HedgeStar Marketing
Apr 1, 20146 min read
Hedging Cross-Border Balance Sheet Exposures
As an alternative to using forward contracts, entities could also hedge
by buying currency options—calls on the nonfunctional currency to pr
HedgeStar Marketing
Jan 1, 20145 min read
Pros and Cons of Hedging Book Values
In the face of these uncertainties, many managers might want to base their decisions about when to hedge on consensus forecasts of market ex