The loan credit default swap (LCDS) was originally designed as an alternative to the traditional credit default swap (CDS) due to its effectiveness in hedging the underlying loans. However, there do not...
A basket is a set of instruments that are held together because the set's statistical profile delivers a desired goal, such as hedging or trading, that cannot be achieved through the individual constituents,...
A basket default swap (BDS) is a commonly traded instrument for the hedging and investment of a credit portfolio. Because of the fluctuation of the global financial environment, concern about the issuer...
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More Hedging articles
A refined view on hedging
Will reduce capital charge by at least 75%, inter-dealer broker claims
Loss-making unit's RWAs would have tripled under Basel III, JP Morgan chief executive says - but attempting to cut capital burden made its hedges more complex
Securitisation would be "a lot less viable" if SPVs do not qualify for clearing exemption, says Isda
A shrinking pool
US Airways, which has stood out from the rest of the airline industry in recent years because of its refusal to hedge fuel costs, wants to hire someone to run a fuel hedging programme. The airline d...
This week, Delta Air Lines confirmed rumours that it was purchasing a refinery on the US east coast, a first-of-its-kind transaction. As details of the deal have emerged, some observers have warmed ...
Valuation of commodity structures in co-integrated futures markets
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