GM Financial’s derivatives fall 72% in value in 2021

A steeper forward interest rate curve paired with an appreciating dollar erased most of the gains booked by the carmaker’s lending arm in 2020

The net fair value of General Motors Financial’s derivatives plummeted 72% in 2021, as a rise in the forward interest rate curve and a stronger US dollar wiped out most of the gains recorded by the carmaker’s financing arm the previous year.

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The unit’s derivatives instruments, totalling $134 billion in notional exposure, had a $326 million net fair value as of end-December. A year prior, it stood at $1.2 billion, against $130 billion of notional.

Over the period, the fair value (FV)

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