Create an Allocation

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
  1. Log in to your Fairways Debt account, e.g. https://login.financeactive.com/eu, and select a customer account, if relevant.
  2. Navigate to Applications Applications.png > Debt & Derivatives.

In this example, we log in to the Main City account.

Portfolio_EN.png

  1. Open the transaction to allocate:
    1. Via a portfolio: Select the relevant portfolio, and click the relevant transaction.Portfolio_2_EN.png
    2. Via the Hedging module: Navigate to Hedging, and click the relevant transaction in the Associated/Dissociated lists.Hedging_2_EN.png

 

Create an Allocation
  1. Navigate to Hedging.
  2. Click Create Allocation.

Hedging_EN.png

  1. Complete the form with all relevant details.

Note: Fields marked with an asterisk * are mandatory.

Field

Description

Derivative

Hedging transaction.

Notes:

  • If you create an allocation from a derivative profile, that derivative details will be preselected and the field not editable.
  • The derivative currency must either match the hedged transaction currency or the account currency.

Available Notional

Remaining amount of the hedging transaction that can be allocated.

Current Allocated Amount

Amount of the hedging transaction that has been already allocated.

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.

Unhedged Amount

Remaining amount of the hedged transaction that can be hedged.

Hedged Amount

Amount of the hedged transaction to hedge.

  1. Click Apply.

Allocation_Create_EN.png

The allocation displays in the hedged transaction profile...

Allocation_Created_EN.png

... and in the hedging transaction profile.

Allocation_Created_Derivative_EN.png

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