Hedge accounting for the masses:
How futures and FASB changed hedging forever
Who should read it?
Banks and credit union executives looking to use swaps and apply hedge accounting to manage interest rate risk
What is it about?
The authors show how advancements in trading swaps (Eris SOFR Swap futures) and applying hedge accounting (recent FASB guidance, especially the “Portfolio Layer Method”) combine to make hedging more accessible by decreasing the cost and complexity
Don’t miss the hedge accounting case studies
Jump to the last section to see case studies demonstrating ledger-level accounting detail for designating Eris SOFR Swap futures as cash flow and fair value hedges
About the Authors
Eric Leininger is Executive Director of Research and New Product Development for Interest Rates and Equities for CME Group. The Research and Product Development team develops new risk management products as well as ensuring the continued relevance of CME Group's current suite of key benchmarks. The team also produces original research into derivatives and their underlying markets across asset classes and around the world.
Craig Haymaker is a managing director with Eris Innovations, responsible for hedging solutions. Prior to Eris, he was a managing director with HedgeStar—an outsourced, back-office hedging provider—overseeing sales, marketing, and operations. Craig is a Certified Public Accountant whose career has been focused on risk management and financial products at Deephaven Capital Management, Deloitte & Touche, Liberty Mutual Group, and US Bancorp. Craig is also a board member with the Professional Risk Managers International Association (PRMIA).
