Hedging and Offset: Difference between pages

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1.
Traditionally hedging refers to the process whereby a firm uses financial instruments (such as forward contracts, futures contracts or options) or other techniques to reduce the impact of fluctuations in such factors as the market price of credit, foreign exchange rates, or commodity prices on its profits or corporate value.
2.
The application of hedging  techniques has been extended to the management of many other risks including for example inflation and longevity risk arising in pension funds.


Ability to set assets against liabilities in multiple bank accounts.  Also used in netting transactions.


== See also ==
== See also ==
* [[Arbitrage]]
* [[Assets]]
* [[Authorisation]]
* [[Liabilities]]
* [[Authority limits]]
* [[Netting]]
* [[Basis risk]]
* [[Open interest]]
* [[Buy-side firm]]
* [[CertFMM]]
* [[Covering]]
* [[Delta hedging]]
* [[Effective]]
* [[Foreign exchange forward contract]]
* [[Futures]]
* [[Hedge accounting]]
* [[Hedge fund]]
* [[Inflation risk]]
* [[Interest rate guarantee]]
* [[Longevity]]
* [[Macro hedging]]
* [[MCT]]
* [[Option]]
* [[Outturn]]
* [[Overhedging]]
* [[Pre-settlement risk]]
* [[Guide to risk management]]
* [[Sell-side firm]]
* [[Speculation]]
* [[Transfer]]
* [[Uncovered]]
* [[Underhedging]]
* [[Warehousing]]
 
 
===Other links===
 
*[[Media:2015_05_May_-_The_devil_is_in_the_detail.pdf| The devil is in the detail, The Treasurer, 2015]]
 
*[http://www.treasurers.org/node/8925 Harness your hedges, The Treasurer, April 2013]
 
*[http://www.treasurers.org/node/4592 Falling foul of currency hedging, John Grout, ACT 2009]
 
*[http://www.treasurers.org/node/689 Interest rate hedging: demand the proof, The Treasurer, 2008]


[[Category:Manage_risks]]
[[Category:Risk_frameworks]]

Revision as of 14:20, 23 October 2012

Ability to set assets against liabilities in multiple bank accounts. Also used in netting transactions.

See also