Kawaller & Company http://kawaller.com Managing Risk Through Derivatives Thu, 25 Apr 2013 16:11:22 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.1 Hedging Interest Rate Exposures under the Dodd-Frank Regime http://kawaller.com/bank-asset-liability-management-april-2013/ http://kawaller.com/bank-asset-liability-management-april-2013/#comments Fri, 12 Apr 2013 12:00:20 +0000 Ira http://kawaller.com/?p=1322 Although the Dodd-Frank Wall Street Reform and Consumer Protection Act – commonly referred to as Dodd-Frank – was enacted in July 2010, its implementation is just now starting to become a pressing concern as these new regulations get phased in … Continue reading →

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]]> http://kawaller.com/bank-asset-liability-management-april-2013/feed/ 0 Taking Stock – Hedging Inventories, Hedging Sales http://kawaller.com/taking-stock-hedging-inventories-hedging-sales/ http://kawaller.com/taking-stock-hedging-inventories-hedging-sales/#comments Fri, 01 Mar 2013 17:18:22 +0000 Ira http://kawaller.com/?p=1270 Some things deserve a second look. Consider the company that buys inventory that it later sells, and suppose that inventory is carried on the balance sheet at lower-of-cost-or-market (LOCOM). In this case, the income statement could be affected at two … Continue reading →

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]]> http://kawaller.com/taking-stock-hedging-inventories-hedging-sales/feed/ 0 Disclosures on Derivatives and Hedging Transactions http://kawaller.com/disclosures-on-derivatives-and-hedging-transactions/ http://kawaller.com/disclosures-on-derivatives-and-hedging-transactions/#comments Mon, 01 Oct 2012 16:52:44 +0000 Ira http://kawaller.com/?p=1094 A Review of Best Practices FASB’s disclosure requirements provide a fair amount of detail about derivatives and hedging transactions; yet, despite efforts by auditors to comply with them, readers of financial statements often find that these disclosures are not entirely … Continue reading →

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]]> http://kawaller.com/disclosures-on-derivatives-and-hedging-transactions/feed/ 0 Options With Options – Hedging With Options Requires Making Decisions http://kawaller.com/options-with-options-hedging-with-options-requires-making-decisions/ http://kawaller.com/options-with-options-hedging-with-options-requires-making-decisions/#comments Fri, 01 Jun 2012 07:00:08 +0000 Ira http://kawaller.com/?p=399 For corporates faced with interest rate risk, foreign currency exposures, or uncertainty with respect to the prices of commodity purchases or sales, two critical ongoing questions persist: How much of this risk should be hedged? And, what kind of hedge, … Continue reading →

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]]> http://kawaller.com/options-with-options-hedging-with-options-requires-making-decisions/feed/ 0 Hedging Currency Risk for Foreign Assets and Liabilities http://kawaller.com/foreign-exchange-hedging-currency-risk-for-foreign-assets-and-liabilities/ http://kawaller.com/foreign-exchange-hedging-currency-risk-for-foreign-assets-and-liabilities/#comments Tue, 01 May 2012 07:00:15 +0000 Ira http://kawaller.com/?p=283 It’s fairly common for multinational corporations to have assets or liabilities that are denominated in currencies other than their functional currencies-payables or receivables or foreign denominated debt or investments. And when this happens, the income statement of that company will … Continue reading →

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]]> http://kawaller.com/foreign-exchange-hedging-currency-risk-for-foreign-assets-and-liabilities/feed/ 0 On the Fence: To hedge, or not to hedge http://kawaller.com/on-the-fence-to-hedge-or-not-to-hedge/ http://kawaller.com/on-the-fence-to-hedge-or-not-to-hedge/#comments Thu, 01 Mar 2012 02:25:50 +0000 Ira http://kawaller.com/?p=586 Deciding to hedge or not starts with recognition of some exposure facing the organization. For instance, companies with debt bear interest rate risk, those that operate internationally bear foreign exchange rate risk, and those that buy or sell basic commodities … Continue reading →

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]]> http://kawaller.com/on-the-fence-to-hedge-or-not-to-hedge/feed/ 0 This Year’s Model – New Lending Practices and Related Accounting Concerns http://kawaller.com/this-years-model-new-lending-practices-and-related-accounting-concerns/ http://kawaller.com/this-years-model-new-lending-practices-and-related-accounting-concerns/#comments Thu, 01 Dec 2011 07:00:46 +0000 Ira http://kawaller.com/?p=181 I’ve been seeing a relatively new lending design with increasing frequency: Many banks are making variable-rate loans with embedding interest rate floors. In light of the low level of interest rates, this practice is neither ill-logical nor unwarranted; but at … Continue reading →

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]]> http://kawaller.com/this-years-model-new-lending-practices-and-related-accounting-concerns/feed/ 0 Base-Line Solutions for Managing Interest Rate Risks http://kawaller.com/base-line-solutions-for-managing-interest-rate-risks/ http://kawaller.com/base-line-solutions-for-managing-interest-rate-risks/#comments Thu, 01 Sep 2011 07:00:17 +0000 Ira http://kawaller.com/?p=291 Just as the railroad barons of the 19th century came to realize that their business was “transportation” rather than “railroads,” most financial professionals involved with futures and options trading have come to appreciate the fact that our business is not … Continue reading →

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]]> http://kawaller.com/base-line-solutions-for-managing-interest-rate-risks/feed/ 0 Switching Caps For Swaps http://kawaller.com/switching-caps-for-swaps/ http://kawaller.com/switching-caps-for-swaps/#comments Wed, 01 Jun 2011 10:00:37 +0000 Ira http://kawaller.com/?p=206 Caps are an overlooked and less expensive alternative to interest rate swaps Interest rate swaps are overwhelmingly the instrument of choice for treasury managers who use derivatives for managing their interest risk. For many, though, this preference may be short-sighted, … Continue reading →

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]]> http://kawaller.com/switching-caps-for-swaps/feed/ 0 Alternative Investments For Everyman http://kawaller.com/alternative-investments-for-everyman/ http://kawaller.com/alternative-investments-for-everyman/#comments Sun, 01 May 2011 07:00:54 +0000 Ira http://kawaller.com/?p=405 A key principle of modern portfolio theory is that both risk and aggregate returns can be improved by diversification. With this consideration in mind, a still-small segment of the institutional investment community has embraced the idea of including alternative assets … Continue reading →

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