Complex Financial Derivatives – Buyers and Sellers Beware

Recent publicity surrounding Deutsche Bank’s potential mis-selling of complex financial derivative products to an unsuspecting Spanish company highlights again the risks associated with hedging foreign exchange. 

Credit Spread

Quantifying bank counterparty credit spread inputs for CVA

Clients often ask what the appropriate credit spread would be when calculating CVA (Credit Value Adjustment) under the current exposure method – we outline our recommended approach for Australia, NZ and UK based organisations.

FEC pre delivery

Forward exchange contracts: pre-deliveries and extensions

Many companies use Forward Exchange Contracts (FECs) to hedge forecasted future foreign currency exposures. Learn how Hedgebook makes this easy.

When to use zero-premium FX collar options as the method of hedging

If it is not wise to always hedge via zero-premium collar options and you should never pay a premium to buy outright call and put currency options – what is the right approach?

FX Options

Hedge accounting FX options: time versus intrinsic value

Learn how FX options lock in the certainty of worst case exchange rate outcomes while allowing participation in favourable rate movements.

Interest Rate Swap

Why use an interest rate swap and how does it work?

A popular blog first released in 2015, largely to help explain what an Interest Rate Swap or IRS is. Funnily enough – the need to know is just as great today, if not greater.

Fund managers

Three reasons investment fund managers use Hedgebook

Here are three key ways Hedgebook makes life easier for investment fund managers or similar finance functions within a hedge fund, private equity or VC firm.

fx forward points

Calculating fx forward points

Since it was first published in 2014 thousands have benefited from this blog’s common-sense approach to a common misunderstanding. It relates to the calculation of foreign exchange (FX) forward points.

Auditors juggling FX

New Focus as Pressure Mounts on Auditors

Not only are companies struggling with the increased focus on exchange rates, but our auditors are also having to learn new tricks.

FX Customers Leaving

Why is it so Easy for Your FX Customers to Leave?

Lockdown has made building FX customer relationships a whole lot harder – but does it have to be? Hedgebook asks the question.

FVA Clouds Bank Valuations

Hedgebook takes a look at FVA (Funding Valuation Adjustments) that sit alongside CVA and DVA within the family of derivative valuations.

FX risk Wine importers and exporters

FX Risk for Wine Importers and Exporters

In working with wine companies over the years the Hedgebook team has a real appreciation for the complexity of managing FX risk for wine importers and exporters.