Corporate defined benefit (DB) plan sponsors face two primary risks: equity risk and interest rate risk. While many sponsors have chosen to extend their LDI duration to improve their hedge ratio, the ...

Corporations with revenues and expenses in foreign currencies have often grappled with the dilemma of whether to hedge each exposure, and if so, how much of it. This is further compounded by the fact ...

The Canadian Journal of Economics / Revue canadienne d'Economique, Vol. 26, No. 1 (Feb., 1993), pp. 175-193 (19 pages) Multivariate GARCH models are employed to estimate time-varying hedge ratios for ...

The volatility of currency has increased in recent years as a combination of quantitative easing and currency wars fuel swings in the foreign-exchange market. Many money managers disregard the ...

Mortgage banking can be a great business for a community bank. The transactional nature of the revenues can lead to a high return on assets, and the customer-retention aspects are invaluable. The ...

In an environment where interest rates are stochastic, we examine the case of a "pure" hedger endowed with a fixed position in a long term bond. In contrast to conventional wisdom according to which ...

The crypto bear market in 2018, which saw the price of bitcoin drop by over 73 percent and those of altcoins drop by over 90 percent, made an excellent case for the need to hedge digital asset ...

Nvidia stock has been an investor darling through 2023, 2024 tells a new story. A recent revelation sparks caution, as hedge funds trim their stake and put/call ratio reaches 1.44 for Nvidia stock.

Last year, with oil and gas prices hitting multi-year highs, producers that typically lock up prices preferred to hedge only lightly, or not at all. With oil prices falling to $70 per barrel, ...