Hedge Valuation Service
We offer tools and services to assist our clients as well as any organisation wishing to get more value from their Treasury function.
What is HVS?
Our Hedge Valuation Service (HVS) is a subscription-based service that helps you independently and securely manage a number of actions relating to your derivative transactions.
Daily closing market valuations for a variety of financial instruments. These values are accurate, unbiased and suitable for both accounting purposes (see Hedge Accounting Services below) and use in financial statements.
Verification of counterparty payment notices enable cash flows to be checked. Calculation errors can be identified and rectified quickly and easily.
HVS can prepare calculations and perform hedge effectiveness testing from inception and throughout the life of a transaction. The process is proven, cost-effective and approved by most auditors.
Derivative counterparty credit ratings and collateral requirements are monitored. Alerts to changes can be distributed.
Analysis of the exposure of the client’s derivatives portfolio to financial markets movements such as changes in interest rates and/or FX rates.
Benefits of HVS
Historically, users of derivatives have been required to request valuations and other related services from their counterparty banks, constraining their ability to analyze their positions in an accurate, timely and anonymous fashion.
Subscribers to our HVS have 24/7 access to a password protected web-based secure data repository and tracking system for their own derivative transactions. Each derivative trade will be modelled using details from the your signed bank confirmations.
Information can then be used for risk management analysis as well as source valuation data for hedge accounting and financial statement reporting purposes. Data can be downloaded into a spreadsheet for further client-specific uses.