To evaluate hedging effectiveness of discrete dynamic hedging strategies
for variable annuities, a joint discrete time model for real-world underlying and hedging instrument price changes between each rebalancing time is needed.
First, it is essential to understand the distinction between hedging strategies
in economic terms and hedge accounting as defined by GAAP.
While all companies that use derivative and hedging strategies
will have to work with the new standard, banks, insurance companies and utilities in particular will feel its effects.
It is shown that these criteria provide managers with a practical means for evaluating ex-post foreign exchange hedging strategies
since they are applied to real business variables, e.
This management can be improved through a variety of hedging strategies
The rule changes also permit an expansion for the qualified hedging strategies
to include hedgewraps and hedgewraps accompanied by short puts.
While certain hedging strategies
and the mathematical analyses supporting them can quickly become exceedingly complex, the exposures that create accounting difficulties and the strategies you can use to correct them fall into only a few broad, recognizable categories.
Traders, hedge funds and corporations with exposure to commodity prices use Kiodex to help measure risk, design optimal hedging strategies
, improve price execution and comply with accounting best practices.
This has made the going tough for financial executives trying to adopt sound economic hedging strategies
without undesirable financial-statement results.
The low cost hedging strategies
that we use have also helped secure our returns," states Thomas.
For instance, Quanex Corporation, a manufacturer of specialized metal products in steel, aluminum and titanium, headquartered in Houston, Texas, uses a number of banks for its "micro" and "macro" hedging strategies
For all foreign investments denominated in an Authorized Foreign Currency, Eaton Vance Management, the Fund's investment manager, currently intends to seek to hedge against foreign currency fluctuations through the use of currency exchange contracts and other appropriate permitted hedging strategies