Cost saving centre and Embedded derivative: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add heading.)
 
imported>Administrator
(CSV import)
 
Line 1: Line 1:
''Corporate treasury - treasury organisation - response to risk''.
A component of a hybrid security that is embedded in a non-derivative instrument.  


Treasury cost saving centres are a more risk-tolerant variant on a pure cost centre.  
An embedded derivative can modify the cash flows of the host contract because the derivative can be related to an exchange rate, commodity price or some other variable which frequently changes.


A cost saving centre is a treasury which - like a cost centre treasury - acts primarily as a service function, but which is allowed a degree of discretion about when to hedge, with a view to reducing net costs.
== See also ==
* [[Derivative instrument]]


They are sometimes also known as value-added centre treasuries.
==See also==
*[[Cost centre]]
*[[Hedging]]
*[[Profit centre]]
*[[Response to risk]]
* [[Treasury organisation]]
[[Category:The_business_context]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 14:19, 23 October 2012

A component of a hybrid security that is embedded in a non-derivative instrument.

An embedded derivative can modify the cash flows of the host contract because the derivative can be related to an exchange rate, commodity price or some other variable which frequently changes.

See also