Treasury Reflections – looking back over the last two years
In this guest blog, Head of Bancorp Treasury Services, Dean Sharrar, takes a timely look at his ‘treasury reflections’ examining what was a very different 2021 and 2022 to what anyone would have previously predicted. …
Hedgebook Partners with TreasuryXpress
We are excited to form a new Partnership with TreasuryXpress, a leader of on-demand digital treasury management solutions. Customers using TreasuryXpress’s platform benefit from easy-to-implement electronic payment workflows that helps automate payments and remove payment…
Migration to MS Azure (a Hedgebook case study by Microsoft)
Founded in 2011, in New Zealand, Hedgebook is a dynamic, international financial software company delivering innovative treasury management solutions to SMEs and their treasury providers – such as banks and foreign exchange brokers. Its mission…
Impact of path dependent options
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. Example: NZ based…
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…
Spreadsheets: a ticking time bomb
The main competitor to Hedgebook’s treasury management system (“TMS”) is excel spreadsheets. They are cheap (can’t get much cheaper than free!), flexible and easy to use. So why do companies choose to replace their spreadsheets…
Year-end Financial Instrument Check List
30 June marks the financial year-end for many Australian and New Zealand public and private companies, as well as Councils. With an ever increasing compliance burden, we have put together a practical check list for…
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…
IFRS 13: Fair value measurement – Credit Value Adjustment
The purpose of this blog is to examine IFRS 13 as it relates to the Credit Value Adjustment (CVA) of a financial instrument. In the post GFC environment, greater focus has been given to the…
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…
The Future of Interest Rate Swaps: Will Regulation Kill this Investment Vehicle?
This is part 9 of a 10 part series on currency swaps and interest rate swaps and their role in the global economy. In part 8, we discussed the role of interest rate swaps in the demise of Greece. Given the importance of swaps in the U.S. housing crash, new regulation has arisen that could threaten the future of this important financial derivative.
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.