Basis risk and Coaching techniques: Difference between pages

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1. ''Hedging''.
''Working effectively with others - coaching''.


Basis risk includes 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.  
Coaching techniques and approaches include cognitive behavioural coaching, solution-focused coaching and person-centred coaching.


For example resulting in a smaller profit being enjoyed on a hedging derivative, than the loss suffered on the underlying exposure.  
Applications and contexts for coaching include executive and leadership coaching, and career coaching.


Good hedge design therefore seeks to eliminate or minimise basis risk in the hedged position, so far as practicable.
==See also==
*[[Coaching applications]]
*[[Cognitive behavioural coaching]]
*[[Contracting]]
*[[Existential coaching]]
*[[Gestalt coaching]]
*[[Mentor]]
*[[Narrative coaching]]
*[[NLP coaching]]
*[[Ontological coaching]]
*[[Person-centred coaching]]
*[[Positive psychology coaching]]
*[[Psychodynamic coaching]]
*[[Solution-focused coaching]]
*[[Transactional analysis and coaching]]
*[[Transactional coaching]]
*[[Transformational coaching]]
*[[Transpersonal coaching]]
*[[Working effectively with others]]




2. ''Funding''.
==Other link==
[https://www.treasurers.org/node/307760 How to pick the right executive coach, Association of Corporate Treasurers]


Basis risk also arises in bank funding.
[[Category:Commercial_drive_and_organisation]]
 
[[Category:Influencing]]
It arises when the reference rates used for the pricing of assets and their funding are different.
[[Category:Self_management_and_accountability]]
 
[[Category:Working_effectively_with_others]]
 
[[Category:Planning_and_projects]]
For example, a UK bank's mortgage assets might be priced by reference to BBR (the Bank of England's Official Bank Rate) plus a margin, while the bank's funding is priced at SONIA (plus a margin).
 
The bank's net interest income depends on the differential between BBR and SONIA.
 
 
Basis risk - in this context - means the risk of adverse changes in the differential between BBR and SONIA. An adverse change might compress the bank's net interest income, or even result in losses.
 
 
== See also ==
* [[Basis]]
* [[Hedge effectiveness]]
* [[Hedging]]
* [[Interest Rate Risk in the Banking Book]]  (IRRBB)
* [[Official Bank Rate]]
* [[Reference rate]]
* [[SONIA]]
 
[[Category:Financial_risk_management]]

Revision as of 08:12, 24 May 2020

Working effectively with others - coaching.

Coaching techniques and approaches include cognitive behavioural coaching, solution-focused coaching and person-centred coaching.

Applications and contexts for coaching include executive and leadership coaching, and career coaching.


See also


Other link

How to pick the right executive coach, Association of Corporate Treasurers

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