Sentence examples for offset exposure from inspiring English sources

The bank posted a net income of 47 million euros in the period a year earlier, when it set aside 1.8 billion euros to offset exposure to Spain's troubled real estate market.

One particular problem lies in the treatment of hedging, where a derivative is used to offset exposure to a real asset on a balance sheet which is not marked to market.

During the final three months of 2011, the bank said it had to set aside 1.8 billion euros to offset exposure to Spain's troubled real estate market and an additional 600 million euros to cover a downturn in its operations in Portugal.

In finance, a hedge is undertaken to reduce risk by taking a position in one market in an attempt to offset exposure to price fluctuations in another market.

"Every bank has a major portfolio and in those portfolios you make investments to offset exposures.

That number would be far smaller if banks' positions were netted out for offsetting exposures.

But banks and hedge funds have offsetting exposures, having issued some CDS insurance contracts and bought others.

The true amount at risk, after cancelling out offsetting exposures, is only about 3% of their notional value (that is $1.6 trillion, even so).

Collateral management, for instance, involves things like cross-margining, in which offsetting exposures are lumped together, allowing investors to reduce the overall amount of capital needed to be set aside to cover positions.

For example, a banking organization may collateralize exposures with cash or securities; a third party may guarantee an exposure; a banking organization may buy a credit derivative to offset an exposure's credit risk; or a banking organization may net exposures with a counterparty under a netting agreement.

The profits on those investments would offset their exposure.