Hedging made simple.
Sound financial decisions start with precise, independent valuations. At HedgeStar, our seasoned team of CPAs and quantitative analysts cuts through complexity to deliver audit-ready assessments. Our approach gives you a true snapshot of your derivatives portfolio—helping you manage risk and seize opportunities.
At HedgeStar, we value a broad range of financial instruments, from plain vanilla to exotic. We support asset classes including municipal bonds, foreign debt, illiquid securities and derivatives. We have a proven, auditor-validated process for determining fair value as defined by ASC 820, IFRS 13, and GASB 72.
As a leading independent valuation specialist, HedgeStar is uniquely positioned to help clients meet fair valuation requirements related to financial assets and liabilities. Clients of all sizes and sectors rely on us to provide their valuation reports at any frequency – daily to annual. We can do the same for you. Learn more about fair value.
Our comprehensive valuation services span the full fair value hierarchy. With a blend of technical rigor and industry insight, HedgeStar stands apart:
We use observable market prices for exchange-traded futures, options, and other standardized derivatives. These valuations rely on live data to provide an immediate, clear view of current market conditions.
When direct market quotes are unavailable, we utilize inputs supported by observable data. Our analysis for interest rate swaps, currency forwards, and commodity derivatives translates less direct data into reliable valuations.
Complex derivatives require advanced modeling to account for unobservable inputs. Our quantitative techniques for structured products and long-dated options produce defensible valuations that accurately capture instrument details.
Our hedge accounting expertise supports a wide range of organizations in navigating financial reporting complexities.
Financial Institutions
Banks and credit unions rely on our prompt, accurate valuations to manage risk and satisfy regulatory demands.
Corporations
Whether you’re a multinational enterprise or a specialized treasury, our tailored services support strategic decision-making and consistent financial reporting.
Audit Firms
Our independent, SOC 1-certified processes provide the technical backbone needed for rigorous audit support and reliable third-party valuations.
Tax-Exempt Entities
Universities, healthcare organizations, and similar institutions meet GASB requirements with our precise and adaptable valuation solutions.
At HedgeStar, technical expertise and practical insight converge. Our team delivers more than numbers; we provide a clear, actionable understanding of your derivative positions, helping you refine risk management strategies and enhance financial performance.
Our valuation methods adhere to all relevant accounting frameworks, ensuring your derivative valuations meet regulatory standards, including:
Find answers to common questions about valuation services, including fair value methodology, model validation, and reporting requirements under ASC 820, GASB 72, and IFRS 13.
HedgeStar provides independent fair value valuations across all three levels of the ASC 820, GASB 72, and IFRS 13 hierarchy including interest rate swaps, currency forwards, commodity derivatives, municipal bonds, mortgage-backed securities, private equity, illiquid securities, cryptocurrencies, and complex structured products. Our team of CPAs and quantitative analysts has the methodology and market data to deliver audit-ready valuations for plain vanilla and exotic instruments alike.
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An Overview of Financial Derivatives Used to Hedge Foreign Currency Risk
For Level 3 instruments where observable market inputs are unavailable, HedgeStar applies proprietary models – such as discounted cash flow, Black-Scholes variants, or Monte Carlo simulation – using internally developed, market-based assumptions. All key inputs are fully documented with supporting rationale, and sensitivity analysis is provided to give auditors and management clear visibility into how assumption changes affect fair value.
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HedgeStar delivers valuation reports at any frequency – daily, monthly, quarterly, or annually – depending on your reporting needs. Reports are delivered through our secure client portal, and with a delivery schedule established upfront to reduce friction at period-end close.
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HedgeStar is SOC 1 certified, meaning our valuation controls have been independently examined and validated. Every deliverable includes full methodology documentation, Level 1/2/3 input disclosures with supporting rationale, and version-controlled processes so prior-period valuations can be reconstructed. Our team also communicates directly with your external auditors when needed.
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Counterparty-provided valuations reflect the bank’s own models and commercial interests, creating a conflict of interest that auditors and regulators increasingly flag as a risk. HedgeStar has no trading positions or counterparty relationships, so our conclusions are based solely on market data and established methodology. External auditors require – or strongly prefer – thirdparty independent valuations for Level 2 and Level 3 instruments, and a counterparty mark rarely satisfies that requirement on its own. Bank statements will not be a credit adjusted value as required under ASC 820, IFRS 13, and GASB 72.
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ASC 820 applies to companies following U.S. GAAP and defines fair value as an exit price using a three-level hierarchy, with Level 2 and Level 3 disclosure requirements. IFRS 13 follows the same core exit-price definition and hierarchy but applies under International Financial Reporting Standards, with some differences in disclosure and application guidance. Under both standards, fair value for derivatives is credit-adjusted – reflecting the risk that either counterparty could default rather than assuming full payment. HedgeStar tailors hierarchy classifications, credit adjustments, and disclosures to match the framework your organization reports under.
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GASB 72 governs fair value measurement for state and local governments, following the same three-level hierarchy as ASC 820 but tailored to public-sector instruments like municipal bonds and government investment pools. As under ASC 820 and IFRS 13, fair value here is credit-adjusted – reflecting counterparty default risk rather than full payment. GASB 53 works alongside GASB 72 to govern how governments account for hedging derivatives, including effectiveness testing and disclosures. HedgeStar tailors valuation methodology, credit adjustments, and hedge documentation to meet governmental reporting requirements.
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Partner with HedgeStar for technically robust, audit-ready valuations that empower your strategic growth and risk management.
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