Hedging made simple.
Interest rate volatility puts ongoing pressure on net interest margin and capital. HedgeStar’s outsourced hedge accounting and valuation services give financial institutions audit-ready solutions without the cost of in-house expertise.
20+ Years serving financial institutions including banks, credit unions, insurance companies and investment funds
SOC 1 Type II certified – audit-ready hedge accounting and valuation reports
ASC 815 and IFRS 9 full coverage including cash flow and fair value hedges
Founded 2004 in Minneapolis, MN – serving financial institutions nationwide and abroad
Interest rate volatility and tightening margins make hedging both critical and complex. Here is what HedgeStar helps financial institutions navigate.
Fixed-rate assets funded by variable-rate deposits create a term mismatch that can cause earnings volatility. A well-structured interest rate swap program, properly accounted for under ASC 815 or IFRS 9, protects NIM without balance sheet distortion.
Hedge designation memoranda, effectiveness testing, and ongoing journal entries demand specialized expertise. Missing or incomplete documentation can disqualify hedge accounting treatment, forcing mark-to-market volatility into earnings.
External auditors and bank examiners require independent, defensible derivative valuations and documented hedge accounting processes. HedgeStar’s SOC 1 Type II certification provides the independent control assurance your auditors need.
HedgeStar guides financial institutions through every stage of the hedge accounting lifecycle – a clear, repeatable process that has been refined over 20 years and hundreds of institutional engagements.
HedgeStar works with your internal hedging team or outside hedge advisor to recommend the appropriate hedging instruments – interest rate swaps, floors, caps, or collars – and hedge designation type under ASC 815or IFRS 9, identifying the approach most likely to achieve effective hedge accounting.
We prepare complete, audit-ready hedge designation memoranda that formally link the hedging instrument to the hedged exposure at designation date.
We conduct both prospective and retrospective effectiveness testing – using regression analysis or critical terms match – and document results in a format that has been accepted by auditors ranging from the Big Four and super-regional firms to regional and local practices.
We prepare all necessary journal entries for fair value adjustments, reclassification of OCI, and periodic hedge accounting settlements.
We produce derivative fair value disclosures, ASC 815 and IFRS 9 footnote language, ASC 820 and IFRS 13 fair values and supporting schedules for regulatory filings and financial statements.
HedgeStar has specialized exclusively in valuation services and hedge accounting since 2004. We are not a general accounting firm that offers hedge accounting as a side service – it is all we do. That depth of focus translates directly into technical accuracy, faster delivery, and documentation that holds up to auditor and examiner scrutiny.
Our controls are independently audited, giving your external auditors the assurance they need without additional testing.
We can serve as your complete hedge accounting department or provide targeted support for specific services like effectiveness testing or valuation.
Our team of CPAs and quantitative analysts has structured, documented, and maintained hedging programs under every iteration of ASC 815.
We understand month-end and quarter-end pressures. Our reporting schedules are built around your close calendar, not ours.
We monitor FASB, OCC, FDIC, and NCUA developments affecting hedging and hedge accounting, proactively advising clients on how regulatory changes affect their programs.
With 20+ years focused exclusively on hedge accounting for financial institutions, HedgeStar brings deep expertise in ASC 815, IFRS 9, and fair value reporting. We deliver SOC 1-certified valuations and documentation that audit teams trust. Our team understands the unique pressures of banking operations – quarter-end closes, regulatory scrutiny, and the need for defensible compliance.
Whether you are establishing a new interest rate hedging program or looking to improve an existing one, HedgeStar has the expertise, technology, and SOC 1-certified process to support your institution.
