Hedgebook Pro Quick Guide

This quick start guide is intended to give an overview of how to use the primary functions within Hedgebook Pro. It is not an exhaustive guide as there is too much within Hedgebook to cover here, however it should get you started on using the key tools. Please also note, when it comes to financial derivatives, there is some variation in how the terminology is used and often multiple names are used to describe the same thing. We have attempted to give some alternatives that you may come across.

Contents

Hedgebook Pro Dashboard

The Dashboard is made up of six primary components

Entering a new deal into Hedgebook Pro

We have focused on the most commonly used financial instruments.

To enter a deal please select the appropriate one from the “Deal Input” dropdown menu.

 

 

 

 

 


FX Forwards


From the Deal Input dropdown list, select FX Forwards

Enter the details from bank confirmation

Unless it is stated all fields must have something entered, if you don’t have a reference or counter party just enter in anything. The deal will not save if there are details missing.

N.B. bank confirmations are often worded from the bank’s perspective (e.g. “Bank Buys” equals “Sell Currency”)

FX Forwards Bulk Upload Using the CSV Importer


If you have FX Forwards you wish to load into Hedgebook that are in a spreadsheet you can use the CSV Importer by clicking on the “Import FX Forwards…” button

Make sure your CSV file is in the correct format, you can download a template from within the window.

 

Payable/Receivable -Cashflows

From the Deal Input dropdown list, select Payable/Receivable

Unless it is stated all fields must have something entered, if you don’t have a reference or counter party just enter in anything. The deal will not save if there are details missing.

Payable/Receivable Bulk Upload Using the CSV Importer

If you have multiple Payable/Receivables (Cashflows) you wish to load into Hedgebook the easiest way is to create a CSV file and load them via the CSV Importer by clicking on the “Import Cashflows…” button. A window will appear with more instructions.

To make sure your CSV file is in the correct format, you can download a template from within the window.

FX Options

From the Deal Input dropdown list, select FX Options

Unless it is stated all fields must have something entered, if you don’t have a reference or counter party just enter in anything. The deal will not save if there are details missing.

Interest Rate Swaps

From the Deal Input dropdown list, select Interest Rate Swap

Unless it is stated all fields must have something entered, if you don’t have a reference or counter party just enter in anything. The deal will not save if there are details missing.

Amortizing Interest Rate Swaps


From the Deal Input dropdown list, select Amortizing Interest Rate Swap

Unless it is stated all fields must have something entered, if you don’t have a reference or counter party just enter in anything. The deal will not save if there are details missing.

To enter the notional amounts and rates click on the Schedule link that opens the below window

Interest Rate Option

From the Deal Input dropdown list, select Interest Rate Option

Unless it is stated all fields must have something entered, if you don’t have a reference or counter party just enter in anything. The deal will not save if there are details missing.

 

Using the Deal’s Quick Edit Icons

You can access key functions for an individual deal via the Quick Edit icons that appear when the mouse pointer is hovered over the “View” icon. You can then access the following functions:

View the instruments parameters:  This allows you to quickly view the deals basic parameters, including currency details, contract rates and amounts.

View in more detail:  This allows you to view the deals basic parameters, as well as it’s mark-to-market valuation for a given date, and the metrics used to calculate that valuation.  Please note that to see this the deal must first be valued using the “Value Now” button”

Edit instrument details:  Use this tool if you wish to change the details for a particular deal previously entered.

Move to trash:  Deletes the selected deal from the database. Please note, there is no “undo” for this action.

Move to another portfolio:  Select this tool to move the highlighted deal to another portfolio you have associated to your account.

Pre delivery and extension wizard:  (FX Forward Only) Not relevant to Audit – provides the option to pre deliver or extend part or all of an outstanding deal.

FX Life Cycle Report:  (FX Forward Only) Not relevant to Audit – it is a report to show you the life of an FX Forward.

Cash-flow Map:  (Interest Rate Instruments Only) – it is a report that shows you the cashflows of the swap over its life. Note: you must value the swap first

Hedgebook Reporting

Select the report you wish to run from the Reports dropdown

Foreign Exchange Reports

Interest Rate Reports

Detailed Instrument Report

The Instrument Detail Report shows all instruments within a portfolio, grouped by instrument type. The report shows details used in valuation calculations such as Discount Factor and Market Forward Rate for FX transactions, and Par Swap Rate for Interest Rate Swaps.

FX Sensitivity Report

The FX Sensitivity Report is mainly used for FAS161/IFRS7 purposes to show the change in the mark-to-market valuation based on percentage change in the spot exchange rate. The percentage change is currently 1%, 5%, 10% and 20%.

Interest Rate Sensitivity Report

The IR Sensitivity Report has been developed specifically for FAS161/IFRS7 purposes and demonstrates how the hedged positions would be affected by interest rate changes of various magnitudes in terms of a parallel shift in the yield curve, either up or down

Current / Non-Current Report

Based on the Valuation Date, Hedgebook calculates which of the cashflows through the life of the swap are an asset (receiving interest), which are a liability (paying interest) and whether the cashflow falls within one year of the Valuation Date or beyond one year.

Transaction Listing Report

These report provides insight into the transactions that have been loaded into the applications between the selected dates.

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