Hedging in Fairways Debt presents the relationship of the actual debt and the risk hedging transactions.
Create an allocation to build the relationship between the debt and the hedges.
Note: You can create an allocation for:
- Loans
- Derivatives
- Securities
Prerequisites
Contact your Finance Active consultant to:
Open the Transaction to Allocate
- Log in to your Fairways Debt account and select a customer account, if relevant.
- Navigate to Applications
> Debt & Derivatives.
In this example, we log in to the Main City account.
- Open the transaction to allocate:
- Via a portfolio: Select the relevant portfolio, and click the relevant transaction.
- Via the Hedging module: Navigate to Hedging, and click the relevant transaction in the Associated/Dissociated lists.
- Via a portfolio: Select the relevant portfolio, and click the relevant transaction.
Create an Allocation
- Navigate to Hedging.
- Click Create Allocation.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
|
Field |
Description |
|---|---|
|
Derivative |
Hedging transaction. Notes:
|
|
Hedge date |
Start date of the hedge. This date must be included within the periods of the derivative and hedgeable transactions.
|
|
Available Notional |
Remaining amount of the hedging transaction that can be allocated: Derivative Notional - Current Allocated Amount Note: The allocation remains active even when the transaction matures, i.e. the available notional does not update even though the hedged transaction matures. For example, a derivative matures in 2050 and fully hedges a transaction that matures in 2025. Even from 2026, the derivative's available notional remains 0. |
|
Current Allocated Amount |
Amount of the hedging transaction that has been already allocated: Derivative Notional - Available Notional |
|
Hedgeable |
Transaction to hedge. Note: If you create an allocation from a non-derivative profile, that transaction details will be preselected and the field not editable. |
|
Hedged Amount |
Amount of the hedged transaction to hedge. |
|
Unhedged Amount |
Remaining amount of the hedged transaction that can be hedged. |
|
Hedged Ratio (%) |
Ratio between amount to hedge and outstanding balance at the hedge date: Hedged amount / Outstanding balance at hedge date * 100 |
- Click Apply.
The allocation displays in the hedged transaction profile...
... and in the hedging transaction profile.
