FASB to consider adding OIS rate as hedge accounting benchmark
Industry says action is imperative as hedges could be rendered ineffective by the market's switch to OIS discounting
The Financial Accounting Standards Board (FASB) will consider adding the federal funds rate to the benchmark interest rates allowed in its fair value accounting regime, following industry calls for the rules to be updated to reflect the pivotal role overnight interest rates have assumed in over-the-counter derivatives markets since the financial crisis.
At the next meeting of the FASB's Emerging
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