Northrop, like its rivals, is concentrating more on information technology and civil projects as a way of hedging the risk of a slowdown in the building of military hardware.
As R&D expenses measure the availability of growth options in a firm's investment opportunity set, firms with greater R&D expenses can benefit more from the risk reduction of corporate hedging through lower risk of underinvestment problems and associated agency costs (Choi et al. 2013).
They joke about "frozen assets" and speak earnestly about the wisdom of "hedging against" risk.
If investment banks are going to be allowed to invest, we want them to do a better, not worse, job of hedging their risk.
As a result, the USPTO explained, the application amounted to an attempt to patent an abstract idea the idea of hedging consumption risk using contracts.Mr Bilski appealed.
Billions more have come in from investment banks that are hedging the risk of complex bets, called swaps, that these same investors have made in the unregulated international swaps market, which dwarfs the regulated markets supervised by the C.F.T.C.
When the Bretton Woods system of fixed exchange rates broke down, London was quick to establish itself as a venue for trading currencies and hedging the risk of floating exchange rates.
Hence, a community's cost of hedging quantity risk in the real-time market also reduces.
Though the fund's prospectus allows the option of hedging currency risk, this fund along with all other Matthews funds–does not currently use its hedging option, providing valuable insurance against a falling U.S. dollar.
Many lenders reach out to these borrowers, but at extreme costs like high interest rates for upfront fees, that they justify as a way of hedging their risk.
