Sentence examples for tool for hedging from inspiring English sources

Not only did market yields shoot up unexpectedly last week, but rates on interest rate swaps — the mortgage market's primary tool for hedging interest rate risk — fell below Treasury yields, a rarity that could make hedging less effective.

It was shrewder in part because it played a key role in the creation of the derivatives index, ABX, which became the prime tool for hedging the market and driving down the price of subprime mortgage backed bonds.

Novel tools for hedging risk, he concluded, had created a "far more flexible, efficient, and hence resilient financial system than existed just a quarter-century ago".

Credit derivatives CDs, therefore, have arisen in response to the surging demand of financial institutions to design vehicle tools for hedging and transferring credit risks.

Options provide a lot of leverage for investing, but are also very useful tools for hedging.

Until recently, fund companies argued that ETFs were merely tools for hedge funds and other institutions.

Each presidential hopeful had reasons for hedging.

Delta hedging strategies are ineffective for hedging volatility derivatives since they require very frequent rebalancing.

5. Limit the potential for hedging strategies.

For hedging purposes, we define good-deal hedging strategies as minimizers of suitable a-priori risk measures under optimal risk sharing with the market.

He seems passionately focused on a mission to help take the growing options-trading industry to a new level of efficiency as it evolves into an ever-increasing tool for businesses to hedge their financial risks (trading volume in currency options, for example, grew to $5.7 billion last year from $4.3 billion in 2003, according to Greenwich Associates).