One of my favourite roles at Hedgebook is working with our awesome development team to deliver new, cool functionality for our users. Recently we have been working on the development of an interactive tool to aid interest rate hedging reporting and decision making. The inspiringly named (😉) Interest Rate Profile Tool (IRPT) replaces those clunky (and frequently erroneous) spreadsheets and provides information on future interest costs for budgeting purposes.

Here is an example of the IRPT:

The user can easily create alternative forecast debt scenarios (the yellow line in the chart) to stress test the impact on hedging levels and interest costs. This can be particularly helpful for those with increasing or decreasing debt profiles.

Hedgebook pulls through and displays the interest rate hedging policy (the solid (policy max) and dotted (policy min) black lines in the chart) for clear visualisation of the position. The table underneath the chart calculates the hedge profile versus limits and notifies the user whether the hedging position is policy compliant, or not. The profile can also be viewed at future dates e.g. key reporting dates, to avoid any future hedging versus policy limit reporting surprises.

All fixed rate hedging is included in the shaded orange area of the chart. This includes fixed rate bonds, interest rate swaps and interest rate options.

The green line is the forecast interest rate which is a weighted average of fixed rate instruments plus the unhedged component at market implied floating rates. By adding a funding margin Hedgebook calculates annual forecast interest rates and dollar costs, as displayed in the table below:

The Interest Rate Profile Tool is accessed from the main page of the Hedgebook app (below the Valuation Date field). We encourage users to have a play, let us know your feedback and get in touch if you need some help (

If you are not yet a Hedgebook user, you can contact us here to arrange a short, on-line demo:

Peter Dickinson

Peter Dickinson

New Zealand based fintech company, Hedgebook, has successfully completed its latest funding round with a significant investment from experienced technology entrepreneur and leader Peter Dickinson. Peter joins Hedgebook as its newest shareholder and director.

Hedgebook’s CEO, Richard Eaddy, comments, “We’re delighted to add someone of Peter’s calibre to our Board, as we scale our treasury management software into offshore markets.

He is a proven builder of quality technology businesses. Peter’s input and knowledge will be invaluable as we enter this next phase of Hedgebook’s evolution.”

“I’m very pleased to be on board to add some ‘scale up’ expertise to the already strong Hedgebook team”, says Peter. “I look forward to helping the team realise the tech company’s potential and accelerate the impact Hedgebook is already making globally.”

Specialising in B2B business software, Peter has over 40 years founding, consulting and scaling technology companies. His achievements include leading and scaling ERP software Greentree to an eventual exit with global accounting software giant MYOB in 2016.

He continues to support the New Zealand technology industry as an investor and adviser for start-up companies through ICE Angels and Tuhua Ventures.

After being introduced to the company by New Zealand Trade and Enterprise, Peter was appointed a director in October 2017.

Greg Anderson, Richard Eaddy, and Roger Kerr, also directors of Hedgebook, are delighted to have Peter’s input into the strategic direction of the company, as it accelerates its growth in overseas markets. Focus has recently turned to the UK, adding a London office to the existing Auckland and Christchurch offices to meet the growing demand for its treasury management software.

Hawke’s Bay is home to a host of food and wine exporters. The climate and fertile soil are ideal growing conditions and we are spoilt by all the produce from New Zealand’s “food bowl”. Pip fruit is particularly well represented and one of Hedgebook’s newest clients is Havelock North Fruit Company. Havelock North Fruit Company are the company behind RockitTM, a uniquely developed apple. It is small, sweet, crunchy and perfectly designed for the snack food market. The overseas markets are going, erm, bananas for them…

Late last year Hedgebook was invited to present at the NZTE’s Ready to Launch function which was hosted by Havelock North Fruit Company. We took the opportunity to demo our FX management software to Shannon Harnett, Financial Controller. “The timing of the Hedgebook demo could not have been better,” says Shannon, “Export sales are booming, putting increased focus on foreign exchange management. I needed a better way than spreadsheets to manage my exposures and to understand the impacts of volatile exchange rates on the business. Hedgebook achieves that.”

Hedgebook is looking to add a special someone to our expanding software development team. The role will suit an enthusiastic person with a broad IT skill set and the ability to fit into a small, but focused team. It is an opportunity to join an exciting, internationally growing, treasury fintech company and work with some great people (even if I say so myself!). Details can be found here:

One of the difficulties companies face when using path dependent options, such as leveraged collars or participating forwards, is that the amount of cover in place will alter under different market conditions.


  • NZ based exporter hedging USD receipts to NZD
  • FX product = leveraged collar
  • Leverage ratio = 2 for 1
  • Protection amount = US$1 million
  • Participation amount = US$2 million
  • Expiry = three months
  • Protection rate = 0.7200
  • Participation rate = 0.6500


The spot rate at the expiry date of the leveraged collar will impact the amount of cover:

  • if the spot rate is less favourable than the protection rate (i.e. higher than 0.7200 in this example) the hedged amount will be US$1 million at the protection rate.
  • if the spot rate is more favourable than the participation rate (i.e. lower than 0.6500 in this example) the hedged amount will be US$2 million at the participation rate.
  • If the spot rate is in between the protection and participation rates there is no obligation to transact

Therefore, depending on where the spot rate is at expiry, the exporter could end up with US$1 million at 0.7200 or $2 million at 0.6700 (or zero if in between the protection and participation rates). The primary reason for entering this type of hedging instrument is to improve the protection and/or participation rate than could otherwise be achieved without leverage.

Risk Management

From a risk management perspective, the company hedging their foreign currency cashflows needs to understand the impact alternative scenarios can have on hedging cover, both amount and rate. Often there are policy limits to adhere to, so having visibility over these, and ensuring limits are not broken, is important.

Hedgebook Reports

The FX Exposure Report in Hedgebook gives the user visibility over their hedge position under alternative outcomes. Hedging percentages, weighted average hedged rates and policy compliance under the best and worst case scenarios can easily be compared. The Currency Impact Report shows the potential dollar impact on the bottom-line under a number of alternative exchange rate scenarios. Both are available from the FX Reports drop-down menu in Hedgebook. Some of the output from these reports is shown below.

Hedgebook gives users of structured options greater confidence that these complex instruments are being recorded, valued and reported appropriately.

If you are an existing user and want some training, or you are interested in a demo of the Hedgebook software, contact us here:

Page 3 of 3012345...102030...Last »