Short description Sharing the practical insights of the author's day-to-day experience advising companies on how to minimize the earnings volatility impact of hedging with derivatives, this case-driven text analyzes in detail real-life hedging strategies.
From the contents Contents
Preface
1 The Theoretical Framework
EU's IAS 39 versus IASB's IAS 39
US Gaap FAS 133 * Accounting Categories for Financial Assets and Liabilities
Financial Assets Categories
2 An Introduction to the Derivative Instruments
3 Hedging Foreign Exchange Risk
Case 3.1 Hedging a Highly Expected Foreign Sale with a Forward
Case 3.2 Hedging a Highly Expected Foreign Sale with a Tunnel
Case 3.3 Hedging a Highly Expected Foreign Sale with a Participating Forward
Case 3.4 Hedging a Highly Expected Foreign Sale with a Knock-In Forward
Case 3.5 Hedging a Highly Expected Foreign Sale with a KIKO Forward
Case 3.6 Hedging a Highly Expected Foreign Sale with a Range Accrual Forward
Case 3.7 The Treasury Centre Challenge
Case 3.8 Hedging Forecast Intragroup Transactions
4 Hedging Foreign Subsidiaries
Case 4.1 Hedging Intragroup Foreign Dividends
Case 4.2 Hedging Foreign Subsidiary Earnings
Case 4.3 Accounting for Net Investments in Foreign Operations
Case 4.4 Net Investment Hedge using a Forward
Case 4.5 Net Investment Hedge using a Cross-Currency Swap
Case 4.6 Net Investment Hedge using Foreign Currency Debt
Case 4.7 Hedging of an Investment in a Foreign Operation
5 Hedging Interest Rate Risk
Case 5.1 Hedging a Floating-Rate Liability using an Interest Rate Swap
Case 5.2 Hedging a Floating-Rate Liability using a Zero-Cost Collar
Case 5.3 Calculations and Implications of Interest Accruals
Case 5.4 Hedging a Fixed-Rate Liability with an Interest Rate Swap
Case 5.5 Hedging a Future Fixed-Rate Bond Issuance with a Swap
Case 5.6 Hedging a Future Floating-Rate Bond Issuance with a Swap
Case 5.7 Hedging a Fixed-Rate Liability with a Swap In-Arrears
Case 5.8 Hedging a Floating-Rate Liability with a European KIKO Collar
6 Hedging Foreign Currency Liabilities
Case 6.1 Hedging a Floating-Rate Foreign Currency Liability using a Receive-
Floating Pay-Floating Cross-Currency Swap
Case 6.2 Hedging a Fixed-Rate Foreign Currency Liability using a Receive-Fixed
Pay-Fixed Cross-Currency Swap
Case 6.3 Hedging a Fixed-Rate Currency Liability using a Receive-Fixed Pay-Floating
Cross-Currency Swap
Case 6.4 Hedging a Floating-Rate Foreign Currency Liability using a Receive-Floating
Pay-Fixed Cross-Currency Swap
7 Hedging Equity Risk
Case 7.1 Accounting for a Stock Lending Transaction
Case 7.2 Measurement of a Mandatory Convertible Bond
Case 7.3 Measurement of a Convertible Bond
Case 7.4 Hedging Step-Up Perpetual Callable Preference Shares
Case 7.5 Base Instruments Linked to Debt Instruments
Case 7.6 Hedging an Available-for-Sale Investment with a Put Option
Case 7.7 Parking Shares through a Total Return Swap
Case 7.8 Hedging an Equity-Settled Options Plan with an Equity Swap
8 Hedging Commodity Risk
Case 8.1 Hedging a Commodity Firm Commitment with a Forward
Case 8.2 Hedging a Commodity Inventory with Futures
Case 8.3 Hedging a Highly Expected Purchase with Futures
