As Hedgebook spreads its wings to new jurisdictions, it is appropriate that this edition of Rickshaw features a non-Australian or New Zealand company.
ALSO’s head office is in Switzerland and provides a B2B market place for the Information and Communications Technology (“ICT”) industry. ALSO bundles logistics services, financial services, supply services, solution services, digital services, and IT services together into individual service packages.
With over 3,500 employees, EUR8 billion of sales and serving 15 countries across Europe ALSO is, by NZ standards, a large company. Although the size of the numbers is larger, the instruments used for hedging are the same.
As a user of interest rate swaps to manage the company’s interest rate risks, fair value of the derivatives is an important aspect of interim and year-end financial reporting (ALSO is listed on the SIX Swiss Exchange). Hedgebook provides these valuations as well as the hedge effectiveness testing aspect of hedge accounting.
The increased reporting requirements of the over-the-counter (“OTC”) derivatives market following the GFC has emphasised the need for strong systems. “Strong” does not have to mean “expensive” or “complex”. Hedgebook provides the valuations required for financial reporting obligations, with the minimum of fuss.