Hedging in Fairways Debt presents the relationship of the actual debt and the risk hedging transactions.
- Log in to your Fairways Debt account and select a customer account, if relevant.
In this example, we log in to the Main City account.
- Navigate to Applications
> Debt & Derivatives. - Click a hedged transaction to open its profile.
- Navigate to Hedging.
The hedging overview displays.
|
Indicator |
Description |
|---|---|
|
Current Rate |
Current interest rate of the hedged transaction. |
|
Current Rate (allocation inc.) |
[Notional Amount * (Current Rate + Interest Rate (Paid) - Interest Rate (Received)) + Current Rate * (Principal - Notional Amount)] / Principal
In this example, the current rate including the allocation on 1 April 2022 is 0,98129%. [Notional Amount * (Current Rate + Interest Rate (Paid) - Interest Rate (Received)) + Current Rate * (Principal - Notional Amount)] / Principal = [2 000 000 * (0,070 150 + 0 - (-0,45557)) + 0,070 150 * (1 000 000 - 2 000 000)] / 1 000 000 =0,98129%
|
