This article first appeared in Profit & Loss. It was written by Ken Monahan, Greenwich Associates, specifically for Bloomberg. Corporations are among the most important customers of FX trading desks.

Are there special hedging provisions for section 988 transactions? Yes. In addition to the business hedging rules I address in our earlier Q&A with Andie series,[1] a special hedging provision is ...

The Financial Accounting Standards Board’s Emerging Issues Task Force has issued an accounting standards update on the effect of derivative contract novations on existing hedge accounting ...

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 ...

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 ...

A survey of the 30 largest public oil and gas companies and their hedging activities as disclosed in their December 21, 2021 10-K filings. Hedging remains a mainstay activity for many oil and gas ...

ProShares Short Dow30 ETF is a popular instrument for shorting the Dow Jones Index. The DOG ETF seeks daily results that correspond to the inverse performance of the Dow Jones Industrial Average. DOG ...

FASB issued a new standard Monday that is designed to make hedge accounting easier for financial statement preparers and easier for financial statement users to understand. According to FASB Chairman ...

A detailed analysis examines various methods to protect investments when market downturns occur. The article reviews several techniques and provides insight into how each strategy works. Investors can ...

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 ...

Translation risk is the foreign exchange risk associated with the translation of net investments in foreign operations into a group’s presentation currency when preparing consolidated financial ...