HedgeStar Marketing
Nov 1, 20137 min read
Managing Risk: Where to start
One specific category of risk where concrete and accessible set solutions are available is the area of price risk. Price risk could pertain
HedgeStar Marketing
Sep 4, 20139 min read
Choosing Between Interest Rate Swaps and Eurodollar Strips
Despite the flexibility to think of this hedge as either the hedge of the fixed rate asset or the hedge of funding rollovers, the accounting
HedgeStar Marketing
Sep 1, 20132 min read
Hedge Effectiveness Testing Revisited
This article addresses two problems often encountered by practitioners who endeavor to qualify for special hedge accounting treatment.
The f
HedgeStar Marketing
Aug 1, 20136 min read
Managing Risk and Managing Income
As an example, suppose crude oil was trading in the spot market at a price of $86 per barrel, and suppose you could trade the series of succ
HedgeStar Marketing
Apr 2, 20135 min read
Hedging Interest Rate Exposures under the Dodd-Frank Regime
For enterprises that currently use interest rate swap contracts under an ISDA master agreement that stipulates bi-lateral collateral adjustm
HedgeStar Marketing
Jan 1, 20137 min read
Taking Stock – Hedging Inventories, Hedging Sales
Assuming the availability of derivative instruments relating to the goods under consideration, most hedgers (or potential hedgers) realize t
HedgeStar Marketing
Jun 1, 20127 min read
Options With Options - Hedging With Options Requires Making Decisions
Despite the appeal of the purchased option hedge, which explicitly limits price risk allowing the hedger to enjoy the benefit of advantageou
HedgeStar Marketing
May 1, 20126 min read
Hedging Currency Risk for Foreign Assets and Liabilities
A currency forward is simply an obligation to buy or sell a specified volume of currency units at a specified date for a specified price (ex
HedgeStar Marketing
Dec 1, 20115 min read
This Year’s Model – New Lending Practices and Related Accounting Concerns
The first pitfall to avoid is using a standard pay-fixed/receive-floating interest rate swap in conjunction with this loan. This plain-vanil
HedgeStar Marketing
Jun 1, 20117 min read
Switching Caps For Swaps
This lack of an initial payment does not exactly mean that the swap is free. It is not. Economists consider the cost of the swap to be an op