Risk Management & Derivatives

Accounting for derivatives: a huge problem for investors

Over many years, as an aside to teaching about convertibles as a product, I’ve had to explain the basis for accounting for them.  The accounting has always seemed pretty harmless to me until I recently made a case study out of the  online luxury fashion retail platform, Far Fetch (LON:OK60)(NYSE:FTCH).

By |2023-10-05T16:56:43+00:00December 16th, 2022|Risk Management & Derivatives|Comments Off on Accounting for derivatives: a huge problem for investors

Airlines have been hedge-trimming, but where are they now?

It’s been a round ride for airline operators over the last 3 years. Just when you think things are re-stabilising after COVID then the energy ‘crisis’ hits the fan and fuel costs increase 3 fold!  But the operators have been hedging, right? And if you’re hedging then you’re eliminating risk, right? If only life

By |2023-10-05T16:56:56+00:00September 8th, 2022|Risk Management & Derivatives|Comments Off on Airlines have been hedge-trimming, but where are they now?

How to avoid the Covid bear-trap of bad debt

Act-1 of the COVID crisis drew to a close with the end of lockdown and the start of "back to the (new) normal", as we rushed to the beach and booked package holidays. Act-2 is now beginning and the prospect of new restrictions and the uncertain timing of the end of furlough present us with

By |2023-12-21T12:41:46+00:00September 10th, 2020|Risk Management & Derivatives|Comments Off on How to avoid the Covid bear-trap of bad debt

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