Companies often try to protect their assets from various risks in a process known as hedging. Think of hedging as being similar to buying auto insurance. When you're out driving your car, there is a ...

A fair value hedge protects against a change in fair value of a recognized asset or liability or of an unrecognized firm commitment attributable to a particular risk. The characteristics of a fair ...

Hedging is a technique used to reduce or fully mitigate a risk exposure. Hedging is a commonplace practice in business, finance, investment management, and even everyday life. In a financial setting, ...

The Financial Accounting Standards Board issued a new accounting standards update Tuesday aimed at improving its existing hedge accounting guidance. It expands the hedged risks that are allowed to be ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

Discover how hedge funds use margin, credit lines, and derivatives to amplify returns. Understand both the potential gains and risks of leveraging these financial tools.

AF: Why have bank treasuries increased inquiries into hedge accounting? AJ: One of the key reasons for this has been the increase in the interest rate over the last few years. Bank treasuries are ...