TAILIEUCHUNG - Lecture Financial markets and institutions (4/e) – Chapter 23

After studying chapter 23, you should be able to: Explain why a company might decide to engage in corporate restructuring; understand and calculate the impact on earnings and on market value of companies involved in mergers; describe what merger benefits, if any, accrue to acquiring company shareholders and to selling company shareholders;. | 8- McGraw-Hill/Irwin Chapter Twenty-Three Managing Risk off the Balance Sheet with Derivative Securities 23- McGraw-Hill/Irwin Managing Risk off the Balance Sheet Managers are increasingly turning to off-balance-sheet (OBS) instruments such as forwards, futures, options, and swaps to hedge the risks their financial institutions (FIs) face interest rate risk foreign exchange risk credit risk FIs also generate fee income from derivative securities transactions 23- McGraw-Hill/Irwin Managing Risk off the Balance Sheet A spot contract is an agreement to transact involving the immediate exchange of assets and funds A forward contract is an agreement to transact involving the future exchange of a set amount of assets at a set price A futures contract is an agreement to transact involving the future exchange of a set amount of assets for a price that is settled daily futures contracts are marked to market daily—., the prices on outstanding futures contracts are adjusted each day to reflect current futures market conditions 23- McGraw-Hill/Irwin Hedging with Forwards A naïve hedge is a hedge of a cash asset on a direct dollar-for-dollar basis with a forward (or futures) contract Managers can predict capital loss (ΔP) using the duration formula: where P = the initial value of an asset D = the duration of the asset R = the interest rate (and thus ΔR is the change in interest) FIs can immunize assets against risk by using hedging to fully protect against adverse movements in interest rates 23- McGraw-Hill/Irwin Hedging with Futures Microhedging is using futures (or forwards) contracts to hedge a specific asset or liability basis risk is a residual risk that occurs because the movement in a spot asset’s price is not perfectly correlated with the movement in the price of the asset delivered under a futures (or forwards) contract firms use short positions in futures contracts to hedge an asset that declines in value as interest rates rise .

• Tài chính doanh nghiệp
• Financial management
• Fundamentals of financial management
• Financing decisions
• Investment decisions
• Role of management
• Financial management function
• Financial statement
• International trade transactions
• Financial statement analysis
• International financial management
• Quản lý tài chính
• Multinational financial management
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Hospitality financial management
• Hospitality industry management
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point