FIN.14:2 - Problem
A hedge can reduce price uncertainty while adding volume, basis, margin, credit or funding risk. Matching only the headline notional can leave the corporation with an obligation it cannot settle.
Source changed 2026-10-03 05:29:54 UTC · snapshot created 2026-10-03 05:30:57 UTC · last check 2026-10-03 06:05:20 UTC
A hedge can reduce price uncertainty while adding volume, basis, margin, credit or funding risk. Matching only the headline notional can leave the corporation with an obligation it cannot settle.