Tag Archives: Hedging
Packaged trades – The renewed focus
Packaged trades are very much in news these days. One of our readers wanted to know what these trades are and why the focus on them now. Hence this write up
Packaged trades are products that provide flexibility to trade transactions. They are...
Counterparty risk management needs a closer relook
Counterparty risk is the risk that a counterparty in a transaction will default prior to the expiration of the contract and will be unable to make agreed contractual payments
Experience has shown, normally banking and financial crises have their...
Foreign Exchange Exposures
Foreign Exchange exposure is a measure of the potential for a firm’s profitability, net cash flow and market value to change because of a change in exchange rates. An important task of the financial manager is to measure foreign exchange exposure...
Foreign Exchange Risk Management
The peculiarities of foreign exchange markets are
– An Over The Counter market
– Only market open 24 hours, seven days a week, 365 days a year
– No single location; no barriers
– ...
DFA and Volcker rule (Proprietary Trading)
Federal Regulators in the United States are moving ahead with a rule that would ban banks from trading for their own profit.
This rule – popularly known as Volcker Rule – is covered under Section 619 of Dodd Frank Act and contains two broad...
An Overview of Structured Finance
What is structured finance?
Structured Finance enables efficient refinancing and hedging profitable economic activity beyond the scope of conventional form of on-balance sheet securities with a view to reduce cost of capital and to mitigate...
Foreign Exchange: Relationships do matter
Relationships do matter in any market – leave alone foreign exchange market. Without such relationship transactions cannot take place. One can easily assign relationship as a key contributor to any increase or decrease in volumes handled by...
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