Doug: Update for cessation of LIBOR.

2024-10-05T07:59:43Z

Update for cessation of LIBOR.

← Older revision		Revision as of 07:59, 5 October 2024
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	This means looking at everything you already know from another perspective.		This means looking at everything you already know from another perspective.


	You learn to:		You learn to:
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	====Suggested solution====		====Suggested solution====


	=====Quantum=====		=====Quantum=====
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	The magnitude of the difference is £1.5 million in years one to six, shrinking thereafter until year 10.		The magnitude of the difference is £1.5 million in years one to six, shrinking thereafter until year 10.


	=====Other issues=====		=====Other issues=====
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	When those questions are answered then the decision can be properly addressed.		When those questions are answered then the decision can be properly addressed.


	=====Interest rates=====		=====Interest rates=====
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	This is a delta hedging approach.		This is a delta hedging approach.


	=====Monitoring=====		=====Monitoring=====
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	This monitoring and possible changes to hedging are ongoing, difficult and expensive and should be considered in the overall costs of funding.		This monitoring and possible changes to hedging are ongoing, difficult and expensive and should be considered in the overall costs of funding.


	=====Recommendation=====		=====Recommendation=====
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	However, all things being equal, a postponement of hedging or partial hedging with subsequent delta hedge adjustments is a preferred course.		However, all things being equal, a postponement of hedging or partial hedging with subsequent delta hedge adjustments is a preferred course.


			''(LIBOR ended in September 2024.)''


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	* [[Swap]]		* [[Swap]]

	~~[[Category:Knowledge_and_information_management]]~~
	[[Category:Manage_risks]]		[[Category:Manage_risks]]

imported>Doug Williamson: Classify page.

2022-07-02T12:06:00Z

Classify page.

← Older revision		Revision as of 12:06, 2 July 2022
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	== See also==		== See also==
			* [[AMCT]]
			* [[LIBOR]]
	* [[MCT]]		* [[MCT]]
			* [[Red herring]]
	* [[Swap]]		* [[Swap]]
	* [[LIBOR]]
	* [[~~AMCT~~]]		[[Category:Knowledge_and_information_management]]
	* [[~~Red herring~~]]		[[Category:Manage_risks]]

imported>Doug Williamson: Add link.

2016-07-10T07:52:52Z

Add link.

← Older revision		Revision as of 07:52, 10 July 2016
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	* [[LIBOR]]		* [[LIBOR]]
	* [[AMCT]]		* [[AMCT]]
			* [[Red herring]]

imported>Doug Williamson: Layout.

2016-06-22T20:10:24Z

Layout.

← Older revision		Revision as of 20:10, 22 June 2016
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	However, all things being equal, a postponement of hedging or partial hedging with subsequent delta hedge adjustments is a preferred course.		However, all things being equal, a postponement of hedging or partial hedging with subsequent delta hedge adjustments is a preferred course.

imported>Doug Williamson: Update.

2016-01-17T21:44:22Z

Update.

← Older revision		Revision as of 21:44, 17 January 2016
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	====MCT taster====		====MCT taster====

	Here is a ~~recent~~ MCT question which applies the strategic and tactical financial decision making skills you need to become a trusted adviser at the highest level.		Here is a 2013 MCT question which applies the strategic and tactical financial decision making skills you need to become a trusted adviser at the highest level.

	::Your company has just negotiated a £100m 10-year LIBOR linked credit facility to fund a step increase in production capacity. The loan amortises in equal instalments from year 6 to year 10, as for similar loans in the past.		::Your company has just negotiated a £100m 10-year LIBOR linked credit facility to fund a step increase in production capacity. The loan amortises in equal instalments from year 6 to year 10, as for similar loans in the past.
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	::'''Would you support the finance director in their preference to postpone the hedge? Explain your decision.'''''		::'''Would you support the finance director in their preference to postpone the hedge? Explain your decision.'''''

	<div style="text-align: right; direction: ltr; margin-left: 1em;">''(MCT General Exam, October 2013, Q4 extracts)''</div>		<div style="text-align: right; direction: ltr; margin-left: 1em;">''(MCT General Exam, October 2013, Q4 extracts)''</div>

	====Suggested solution====		====Suggested solution====

imported>Doug Williamson: Update 'recent' to 2013.

2016-01-17T21:42:31Z

Update 'recent' to 2013.

← Older revision		Revision as of 21:42, 17 January 2016
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	This page contains a suggested solution to a ~~recent~~ MCT exam question, together with extracts from an article that appeared in ''The Treasurer'' in February 2015.		This page contains a suggested solution to a 2013 MCT exam question, together with extracts from an article that appeared in ''The Treasurer'' in February 2015.

	''With many thanks to Will Spinney and Kerry Attwell-Thomas for providing the suggested solution and other valued advice.''		''With many thanks to Will Spinney and Kerry Attwell-Thomas for providing the suggested solution and other valued advice.''

imported>Doug Williamson: Link with swap and LIBOR pages.

2015-03-15T18:41:51Z

Link with swap and LIBOR pages.

← Older revision		Revision as of 18:41, 15 March 2015
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	== See also==		== See also==
	* [[MCT]]		* [[MCT]]
			* [[Swap]]
			* [[LIBOR]]
	* [[AMCT]]		* [[AMCT]]

imported>Doug Williamson: Amend scene-setting wording.

2015-03-02T18:20:48Z

Amend scene-setting wording.

← Older revision		Revision as of 18:20, 2 March 2015
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	This page contains a suggested solution to an MCT exam question ~~(October 2013~~, ~~Q.4)~~ together with extracts of an article that appeared in ''The Treasurer'', February 2015.		This page contains a suggested solution to a recent MCT exam question, together with extracts from an article that appeared in ''The Treasurer'' in February 2015.

	''With thanks to Will Spinney and Kerry Attwell Thomas for providing ~~advice and~~ the suggested solution.''		''With many thanks to Will Spinney and Kerry Attwell-Thomas for providing the suggested solution and other valued advice.''

imported>Doug Williamson: Added introduction for context and moved acknowledgements earlier

2015-03-02T17:59:22Z

Added introduction for context and moved acknowledgements earlier

← Older revision		Revision as of 17:59, 2 March 2015
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			This page contains a suggested solution to an MCT exam question (October 2013, Q.4) together with extracts of an article that appeared in ''The Treasurer'', February 2015.

			''With thanks to Will Spinney and Kerry Attwell Thomas for providing advice and the suggested solution.''


			====Strategic partner====

	To become a good treasurer, you need deep financial understanding and analytical skills, along with the ability to communicate your expert advice to an audience of senior non-specialists.		To become a good treasurer, you need deep financial understanding and analytical skills, along with the ability to communicate your expert advice to an audience of senior non-specialists.

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	~~''With thanks to Will Spinney and Kerry Attwell Thomas for their input to this page.''~~

imported>Doug Williamson: Added acknowledgement to Will and Kerry

2015-03-02T17:33:55Z

Added acknowledgement to Will and Kerry

← Older revision		Revision as of 17:33, 2 March 2015
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	However, all things being equal, a postponement of hedging or partial hedging with subsequent delta hedge adjustments is a preferred course.		However, all things being equal, a postponement of hedging or partial hedging with subsequent delta hedge adjustments is a preferred course.


			''With thanks to Will Spinney and Kerry Attwell Thomas for their input to this page.''

Suggested solution - Revision history