Fincad News
Global Netting Requires Global Hedging
By Nik Venema |
March 18, 2016
Although more institutional investors benefit from netting their collateral obligations, many have not updated their hedging strategies to reflect their firm’s global approach to collateral. James Gavin, Senior Derivatives Analyst at FINCAD discusses how the standard risk-neutral valuation approach to pricing derivatives is changing slightly as an increasing number of firms start to include consideration of their collateral-management strategies into their hedging decisions.