HedgeStar Library

HEDGESTAR LIBRARY

Looking for an article on risk management, hedge accounting, independent valuations, or derivatives? Check out our library of articles, blogs, and case studies?

Newsletters: HedgeTalk

  • Inflation is Up as Jobless Claims Fall
  • Existing Home Sales in the US Rebound
  • US Fed Indicates Three Rate Cuts in 2024
  • Job Openings in the US at their Lowest in Nearly Three Years
  • The US Economy Grows More Than Expected
  • US PPI Falls – Fed Likely to Leave Rates Unchanged in December
  • US 10-YEAR TREASURY BOND YIELD KEEPS FALLING
  • War in the Middle East and Inflation Lead this Week’s Headlines
  • US Trade Gap at its Lowest in Nearly Three Years
  • HedgeTalk: Risk Versus Speculation
  • The Impact of Having to Restate Financial Statements
  • The Impact of Not Electing Hedge Accounting
  • US Industrial Output Growth Hits a 6-month High
  • US Economic Optimism Lowest in 12 Months
  • US Treasury Yields Continue to Rise
  • Fed Increases Rates to 22-Year High
  • Inflation Worldwide Shows Signs of Cooling
  • US Inflation Rate Falls More than Expected
  • New Home Sales and Mortgage Application Increase in the US
  • Fed Signals More Rate Increases in 2023
  • Fed Leaves Rates Unchanged but Signals More Hikes to Come
  • Historic Default Averted – Debt Ceiling Deal is Signed into Law
  • Biden and McCarthy Reach Debt Ceiling Deal – House Set to Vote on the Bill
  • Rising Rates and Inflation Take their Toll on Mortgage Applications and Building Permits
  • Inflation and Jobs Data Lead this Week’s Headlines
  • OPEC, Finland and Trump Lead This Week’s Headlines
  • The US Approaches Debt Limit with no Agreement in Place
  • Inflation Cools Pushing 10- and 30-year Treasury Yields Higher
  • Fed Rate Increase and First Republic Bank Failure Leads this Week’s Headlines
  • Investment Limits in China and Slow US Housing Growth Lead this Weeks Headlines
  • HedgeTalk: What Are Five Commonly Used Derivatives for Hedging Interest Rate Risk?
  • Five Common Mistakes When Setting Up a Hedging Program
  • Five Risk Assessments to Understand Financial Risk
  • HedgeTalk: Five Mistakes Companies Make When Hedging Financial Risk
  • Five Mistakes Companies Make When Negotiating OTC Agreements
  • HedgeTalk: Five Mistakes Companies Make When Hedging Financial Risk
  • Five Common Mistakes Made When Implementing a Trade and Risk Management System
  • Five Problems Companies Face When Not Hedging Foreign Currency Risk
  • Five Signs That a Financial Institution is Not Hedging its Interest Rate Risk

General Risk Management Articles

  • Mythbusters: Debunking the myths about derivatives
  • Dual Focus: Hedging Programs Need to Focus on Both Sides of the Income Statement
  • Derivatives’ Valuations: Assessing Alternative Methodologies​
  • Hedging the Hedge: How Treasurers Can Decide How Much to Hedge​
  • Designing a Proper Hedge: Theory vs. Practice (Abstract)​
  • Implementing a Hedging Program: Building a Dashboard
  • Caps: Challenging the Conventional Wisdom that Caps are Too Expensive
  • Pros and Cons of Hedging Book Value​
  • Managing Risk, Managing Income​
  • Options With Options – Hedging With Options Requires Making Decisions
  • ​The Long View-First steps in designing a risk management program
  • ​Derivatives Basics​
  • Financial Engineering 101 – How Derivative Contracts Impact Cash Flow​
  • 10 Tenets of Derivatives – Instruments to be Used to Manage Risk​
  • Measuring Interest Rate Risk​
  • Interest Rate Risk
  • Measuring Currency Exchange Rate Risk
  • HedgeStar Introduces Risk Desk as a Service (“RDaaS”)​
  • Budgetary Targets vs Volatile Fuel Prices – Case Study with HedgeStar and Blue Lacy Advisors
  • How HedgeStar Can Help Financial Institutions
  • Swaptions – Funny Name, Useful Tool
  • Risk Management – Attitude Adjustment: No One Saw This Coming!
  • Risk Management – Attitude Adjustment: Inherent to Strategy Execution
  • Energy Risk Management – Attitude Adjustment: How Do You Want To Be Judged?

Helpful Resources

  • Hedge Strategy Review
  • Risk Management Process
  • Enterprise Risk Management Strategy

Articles on: Hedge Effectiveness and Accounting Concerns

  • The Top Five Things That Can Go Wrong if a Company Does Not Hedge its Exposure to Foreign Currencies
  • What Can Go Wrong If You Don’t Use Hedge Accounting When Hedging Financial Risk With Derivatives
  • HedgeStar’s Top Five Signs That You Are Not Hedging Interest Rate Risk
  • HedgeStar to Partner With Monex USA
  • ​​Hedging Pre-Payable Financial Instruments
  • Nuances of Novation: Hedge Accounting Considerations
  • Good News on the Derivatives Accounting Front
  • Market Risk – What Hedgers (and Auditors) Should Know About Regression
  • What Analysts Need to Know about Accounting for Derivatives
  • ​Ways to Test Hedge Effectiveness
  • ​Accounting Considerations When Hedging
  • Hedge Accounting – A Better Way to Hedge Interest Rate Risk
  • How to Communicate to a Board Regarding Hedging Risk with Derivatives?
  • Biofuel Hedging – How Can HedgeStar help?
  • Elevate your Risk Management with KYOS & HedgeStar
  • Swaptions – Funny Name, Useful Tool
  • Component Hedging: Nerds to the Rescue!
  • What are Options?
  • What is Hedging?
  • What is a Swap?
  • What is Hedge Accounting?
  • What is a Derivative?
  • SAS 144 Changes and How This Could Impact You

Helpful Resources

Accounting Standards Updates

  • What does ASU 2017-12 mean to me? – Commodities
  • What does ASU 2017-12 mean to me? – Financial Institutions
  • Navigating the myriad rules of hedge accounting. Q&A with Cargill Risk Management

Helpful Resources

Last of Layer

  • Last of layer checklist
  • Last of layer example

IFRS 9

  • IFRS 9 Adoption Assessment
  • IFRS 9 vs. IAS 39
  • IFRS 9 Migration
  • Key Changes – IFRS 9
  • What to expect form IFRS 9

Case Studies / White Papers / Data Sheets

  • Outsource Case Study
  • 15Y Fixed Rate Loan Yield Analysis
  • 30Y Fixed Rate Mortgage Yield Analysis
  • ASC 815 White Paper
  • GASB 53 White Paper
  • Hedge Accounting Services
  • Outsourcing – A Brighter Solution
  • Case Study: 15 Year Fixed Rate Loan Yield Analysis

Valuations

Case Studies / White Papers / Data Sheets

  • Valuation Services
  • Client Portal

Derivatives

Trading / Investing with Derivatives

  • Mythbusters: Debunking the myths about derivatives
  • Synthetic Debt, Repos, and Dollar Rolls​​
  • What is a Derivative?
  • ​Calendar Spreads, Outright Futures Positions & Risks
  • The TED Spread
  • Hedging – Meat Price Risk

Currencies

GASB 72

  • The Net Effect – Considering Net Investment Hedges
  • Tactical Considerations of Hedging Currency Exposures
  • Hedging Cross-Border Balance Sheet Exposures
  • Hedging Currency Risk for Foreign Assets and Liabilities

Case Studies / White Papers / Data Sheets

  • Hedging Currency Exposures by Multinationals: Things to Consider
  • Hedging Versus Speculation

Commodities

Trading / Investing with Derivatives

  • Accounting for Commodity Hedges: Hypothetically Speaking
  • Taking Stock – Hedge Inventories, Hedging Sales
  • Cross Hedging – X Marks the Spot
  • ​Enterprise Risk Management – Meats​
  • Meats – Hedge Accounting
  • Hedging – Meat Price Risk

Currencies

  • HedgeStar’s Top Five Signs That You Are Not Hedging Interest Rate Risk
  • ABC Depository – A Case Study in Interest Rate Risk Management
  • Hedging Benchmark Interest Rate Exposures
  • How To Manage Tax-Exempt Funding Exposures
  • Back-To-Back Swap Strategy
  • Interest Rate Swaps: Economics & Accounting
  • Hedging With Off-Market Swaps
  • Hedging Loan Commitments
  • Saving Money When Banks Offer ‘Chooser Options’
  • The Two Faces of Market Risk
  • Synthetic Debt, Repos & Dollar Rolls
  • Hedging Bank Portfolios: Framing the Issue
  • Comparing Apples & Oranges (& Pears)
  • Choosing Between Interest Rate Swaps & Eurodollar Strips
  • Hedging Interest Rate Exposures under the Dodd-Frank Regime
  • This Year’s Model – New Lending Practices & Related Accounting Concerns
  • Switching Caps for Swaps
  • Attracting Deposits
  • Assessing Interest Rate Caps
  • Explaining Hedging to your Board
  • Pricing Swaps: Once Upon A Time…
  • Free Money
  • Interest Rate Swaps: Accounting vs. Economics
  • Long Haul Hedge Accounting
  • ​Incorporating Prepayment Risk Considerations When Making Hedging Decisions
  • Tactical Hedging: A Tricky Balancing Act
  • Disciplined Hedging – Controlling Interest Rate Risk in an Uncertain World
  • Accounting & Economics: Will the Twain Meet For Mortgage Originators?
  • Hedging With Swaps
  • Hedging Portfolios
  • Documenting Interest Rate Hedges
  • Partial-Term Hedging
  • Impact of Accounting Rules on the Market for Swaps
  • Comparing Eurodollar Strips to Interest Rate Swaps
  • Introducing the New Ameribor Index
  • Credit Unions and Interest Rate Swaps
  • Credit Unions and Interest Rate Swap – Advantages and Disadvantages
  • Credit Union – Case Study