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.
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?
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.
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.
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.
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.
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.
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 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.
Is auto-hedging the next big thing in treasury?
The pros and cons of auto-hedging is becoming a key debate; what is it, the motivations for it and what concerns could customers have?