A fair value hedge protects against a change in fair value of a recognized asset or liability or of an unrecognized firm commitment attributable to a particular risk. The characteristics of a fair ...

Companies often try to protect their assets from various risks in a process known as hedging. Think of hedging as being similar to buying auto insurance. When you're out driving your car, there is a ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...

The Financial Accounting Standards Board issued a new accounting standards update Tuesday aimed at improving its existing hedge accounting guidance. It expands the hedged risks that are allowed to be ...

The Financial Accounting Standards Board (FASB) has introduced an Accounting Standards Update (ASU) that expands the scope of hedge accounting. The update addresses five main areas, allowing companies ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...

AF: Why have bank treasuries increased inquiries into hedge accounting? AJ: One of the key reasons for this has been the increase in the interest rate over the last few years. Bank treasuries are ...

One of the drawbacks that comes with investing in foreign stocks is their higher volatility relative to domestic stocks. From January 2000 through June 2017, a U.S.-based investor holding a fund that ...

Currency-hedged exchange-traded funds (ETFs) aim to eliminate or reduce the exposure of a portfolio to currency fluctuations. These ETFs invest in international stocks, bonds or other assets ...