Cross currency swap
Network Rail is not the average corporate, but it cares about financing and hedging costs as much as any non-financial – which explains a decision to abandon its old collateralisation policy last year....
With long-term bonds in short supply and falling interest rates putting pressure on earnings, Asian insurers are considering giving up on asset-liability matching in order to chase yield. Blake Evans-Pritchard...
Ultra-low rates forcing companies to shift focus from asset-liability matching
Insurance Risk and BNY Mellon have conducted a survey to look at how insurance companies are preparing for the new regime and the opportunities and challenges that the changes will bring.
More Cross currency swap articles
Returns for hedging via long-term cross-currency swaps are attractive, but few are able to do so because of the lack of credit support annexes in place
Current treatment of initial margin on uncleared swaps will cost Australian banks $21 billion
Firms used to be able to throw anything they liked into the hypothetical derivative that is used to test cashflow hedge accounting, but standard-setters are embracing a purer approach. It has already caused a furore over cross-currency basis spreads,...
Insurers are seeking greater protection for their derivatives trades, but efforts to renegotiate credit support annexes with counterparties are proving to be protracted and insurers are looking at ways to sidestep new regulatory burdens. Blake Evans-Pritchard...
A major change is needed to correct new hedge accounting rules, which could restrict derivatives use by Asian firms hedging their foreign currency exposures
A few large banks are renting out their credit ratings to protect structured finance vehicles from downgrades. But it’s a complex business, and it can come at a heavy cost to the original counterparties. By Lukas Becker
This paper discusses a number of diverse considerations that risk managers need to incorporate into their thought processes and recurring procedures if they are to fulfill their role more effectively in the future
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