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…
New FX hedging instruments within Hedgebook
Traditionally, the typical Hedgebook user has focused their foreign exchange hedging activity at the vanilla end of the spectrum. Forwards, purchased options and options that are in one-for-one collar relationships have been the staple diet…
NZTE Ready for Launch 2016 Showcase
Hedgebook was delighted to be selected as one of twelve companies to pitch at the NZTE showcase event in Hawke’s Bay on November 2. The Rockit Apples pack-house in Havelock North was transformed into an…
How to better understand the impact of FX hedging decisions
Companies will often hedge foreign currency exposures against harmful exchange rate fluctuations. Having decided to enter financial instruments, such as forward exchange contracts and options/collars, it is necessary to evaluate the performance of the hedging…
Featured Client: Kapiti Coast District Council
Kapiti Coast District Council (KCDC) has been a Hedgebook client for almost two years. Originally Council’s requirement for Hedgebook was to perform the independent valuations of its interest rate swap portfolio at 30 June financial…
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…
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…
Latest Hedgebook client: Skellerup
Just like Kathmandu, who recently became a Hedgebook client, we are pleased to announce the signing of another iconic New Zealand brand, Skellerup. Many people know Skellerup as being the leading producer of gumboots, however,…
FX hedging, not just for the “big boys”
We often encounter a common misconception among SME importers and exporters that the FX hedging market is the domain of the “big boys”. SME importers and exporters often believe that the use of financial instruments…
HedgebookPro’s enhanced debt module
In the very early days of Hedgebook, the software was developed solely as a derivative valuation tool. Over time, additional functionality was introduced to include a suite of reports. The reporting supports both the day-to-day…
Latest Hedgebook client: Kathmandu
Kathmandu is an iconic New Zealand company, having been established in 1987 and grown to be a global success. Kathmandu is a leading specialist in quality clothing and equipment for travel and adventure in New Zealand,…
Nobody said it was easy
While I am sure when Coldplay sang “Nobody said it was easy” they weren’t talking about FX hedging (unless they were thinking of repatriating some of their royalties), it doesn’t have to be as uncertain…