Hedging Overview

Hedging in Fairways Debt presents the relationship of the actual debt and the risk hedging transactions.

 

  1. Log in to your Fairways Debt account, e.g. https://login.financeactive.com/eu, and select a customer account, if relevant.

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

  1. Navigate to Applications Applications.png > Debt & Derivatives > Hedging.

Portfolio_EN.png

The hedging overview displays.

Hedging_EN.png

 

Hedging_Indicators_EN.png

Indicator

Description

Outstanding Notional

Total notional amount of all the outstanding derivatives in the actual portfolio.

Floating Outstanding Balance

Total balance amount of all the outstanding floating-rate transactions in the actual portfolio.

Hedged Amount

Total notional amount of the derivatives associated with at least one hedged transaction.

In this example, the hedged amount is EUR 5 000 000.

We add up the notionals of all derivatives displayed in the Associated list:

2 000 000 + 3 000 000

= 5 000 000

HedgedAmount_EN.png

Unhedged Amount

Total notional amount of the derivatives associated with no hedged transaction:

Outstanding Notional - Hedged Amount

 

In this example, the unhedged amount is EUR 1 000 000.

Outstanding Notional - Hedged Amount

= 6 000 000 - 5 000 000

= 1 000 000

Hedging_Indicators_EN.png

Portfolio Hedged Ratio

Ratio between hedgeable amount (notional) and amount to hedge (balance):

Outstanding Notional / Floating Outstanding Balance * 100

 

In this example, the portfolio hedged ratio is 150%.

Outstanding Notional / Floating Outstanding Balance * 100

= 6 000 000 / 4 000 000 * 100

= 150%

Hedging_Indicators_EN.png

 

Hedging_Table_EN.png

#

Description

Options

A

Display:

  • Associated: Transactions currently hedged, i.e. transactions associated with derivatives.
  • Dissociated:
      • Transactions not currently associated with any derivatives.
      • Derivatives not currently associated with any transactions.

 

B

Group transactions to sort them in the list.

  • Loans
  • Derivatives
  • Derivative Currencies
  • Derivative Counterparties

 

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