FASB recognises OIS rate as hedge accounting benchmark
Rule change could see growth in swaps indexed to federal funds rate
The Financial Accounting Standards Board (FASB) has added the federal funds rate to the benchmarks recognised in its fair value accounting regime – a step the industry hopes will make it easier for over-the-counter derivatives users to prove their hedges are effective, which is a key requirement of hedge accounting rules. It could also spur the growth of swaps that reference this rate.
The FASB
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