Frestad (2009) examines the efficiency of alternative hedging strategies
of firms facing price risk.
As an alternative to quadratic risk measure, a piecewise linear measure is used in Coleman (in press), Coleman, Li, and Patron (2003), and Patron (2003) to compute discrete local and total risk minimization hedging strategies
The rationale for hedge accounting derives from the fact that regular GAAP provide different treatment for the offsetting positions that make up some hedging strategies
About a third of the companies think the standard will change their use of derivatives and hedging strategies
This is followed by an example illustrating how the stochastic dominance criteria can be used to evaluate hedging strategies
based on foreign exchange forecasts.
Smith asks his treasurer and controller to develop economic hedging strategies
for this exposure, while minimizing the impacts on reported earnings that speculative accounting methods would create.
Many companies believe the accounting rules do not reflect today's economic realities, in which hedging strategies
encompass a portfolio of anticipated transactions, assets or liabilities rather than a specific transaction.
RSP also offers hedging strategies
and other institutional services, such as restricted transaction approval; Rule 144, 145 and prospectus sales; prime brokerage services for hedge funds holding restricted securities, and block sales of stakes in public companies.
The low cost hedging strategies
that we use have also helped secure our returns," states Thomas.
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
The volatility associated with the guaranteed features of Allstate's variable annuity products are expected to be managed using the same hedging strategies
PFI uses on its in-force variable annuities.
Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including the completion of the quarterly internal certification process, the effect of economic and market conditions including industry volumes and margins(1); the level and volatility of interest rates(1); the Company's hedging strategies
, hedge effectiveness and asset and liability management(1); the accuracy of subjective estimates used in determining the fair value of financial assets of Indymac; the credit risks with respect to our loans and other financial assets;