Basis risk and ESG: Difference between pages

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Basis risk usually means the risk of an unfavourable change in the relationship between the price of a derivative and the market value of an underlying asset or liability being hedged.  
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For example resulting in a smaller profit being enjoyed on a hedging derivative, than the loss suffered on the underlying exposure.  
Environmental, Social and Governance.
 
 
2.
 
Environmental and Social Governance.


Good hedge design therefore seeks to eliminate or minimise basis risk in the hedged position, so far as practicable.


== See also ==
== See also ==
* [[Basis]]
* [[Corporate governance]]
* [[Hedge effectiveness]]
* [[CSR]]
* [[Hedging]]
* [[Environmental concerns]]
* [[ESG investment]]
* [[ESG ratings]]
* [[Green Finance Initiative]]
* [[Social concerns]]


[[Category:Ethics_and_corporate_governance]]

Revision as of 08:54, 18 September 2019

1.

Environmental, Social and Governance.


2.

Environmental and Social Governance.


See also