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Insights, updates and learnings
Our GOAT blog: Calculating fx forward points
27/03/23
Our GOAT blog: Calculating fx forward points
Every year thousands of readers like you benefit from this common-sense approach to the calculation of foreign exchange (FX) forward points. First published 10 years ago, we regularly review and update the FX forward points content – this is the latest edition
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Inflation leads to rapid increase in interest rates
09/08/22
Inflation leads to rapid increase in interest rates
After more than a decade of declines in interest rates, leading to the historically low interest rate environment, the recent reversal has been rapid. But what does this mean for those of us in the business of managing FX risk?
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End of year derivative valuations
22/02/21
End of year derivative valuations
Having first looked at this in 2013 we revisit our analysis of end-of-year derivative valuations and the impact they have.
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Rising interest rates, positive impact on borrower’s IRS valuations
26/06/18
Rising interest rates, positive impact on borrower’s IRS valuations
Despite a backdrop of trade wars, Brexit and other geo political uncertainties most regions have experienced an environment of increasing interest rates as the outlook is interpreted as generally positive. This has been most pronounced in North America but also felt in the UK, Australia and Europe. An interest rate...
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31/10/17
Interest Rate Profile Tool
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...
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06/04/16
LGFA Borrower Note in Hedgebook
It was a fantastic two days rubbing shoulders with the Local Government finance community at the recent SOLGM Strategic Finance Forum in Wellington. It was an opportunity to listen to some of the inspiring initiatives going on in the sector such as the Hamilton City Council/Downer Waikato Infrastructure Alliance and...
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06/04/16
Credit conditions worsening means greater materiality of CVA/DVA
The introduction of IFRS 13 in January 2013 was, in part, recognition of the mispricing of market credit risk that had resulted in the near collapse of financial markets in 2008. IFRS 13 requires “fair value” to include a credit adjustment for financial instruments such as FX forwards, FX options...
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17/04/14
IFRS 7 – Disclosure Requirements of Financial Instruments
A key pillar of Hedgebook’s ethos is to make life easier for corporates in managing and reporting their financial derivative exposures. This approach extends to aiding Treasurers and CFOs comply with the ever increasing compliance requirements of accounting standards. The most recent standard to create further onus on corporates is...
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Credit Value Adjustment
17/10/13
Credit Value Adjustment
Credit Value Adjustment or CVA has been around for a long time, however, with the introduction of the accounting standard IFRS13, this year there is a requirement to understand it a bit better. The new standard requires the CVA component to be separately reported from the fair value of a...
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16/10/12
Where do Swaps Fit into Your Company’s Portfolio?
This is part 10 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 9, we discussed regulation affecting swaps. In part 10, we’ll review the effectiveness of swaps and whether or not they should be used part of a hedging strategy.
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The Euro-zone Crisis: Goldman Sachs, Greece, and Swaps
10/10/12
The Euro-zone Crisis: Goldman Sachs, Greece, and Swaps
This is part 8 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 through 4, we discussed the differences between interest rate swaps and currency swaps, as well as the pricing mechanisms for fixed-for-floating, floating-for-floating, and fixed-for-fixed swaps. In part 8, we’ll discuss the role of swaps in more recent times: the Euro-zone crisis.
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08/10/12
Understanding Central Bank Liquidity Swaps
This is part 7 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 7, we illustrated how companies use swaps in the global market place, but on a company-to-company basis. In part 8, we’ll explain the purpose of swaps on the central bank level and when they’re used.
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05/10/12
Real World Example: Swaps Between Companies
In part 6 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy we provide a real world example of how swaps are constructed and executed.
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03/10/12
Swaps: A basic Q and A
This is part 5 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 through 4, we discussed the differences between interest rate swaps and currency swaps, as well as the pricing mechanisms for fixed-for-floating, floating-for-floating, and fixed-for-fixed swaps. In part 5, we’ll review the basics before looking at some real world examples in parts 6 and 7.
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02/10/12
Floating-for-Floating and Fixed-for-Fixed Swaps: Domestic and Foreign Currency Transactions
This blog on floating-for-floating and fixed-for-fixed swaps is part 4 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy.
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23/09/12
Fixed-for-Floating Swaps: Domestic and Foreign Currency Transactions
This is part 3 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In parts 1 and 2, we discussed the beginnings of swaps as well as the differences between interest rate swaps and currency swaps. In part 3, we’ll discuss fixed-for-floating swaps.
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