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RBA Glossary definition for derivative

derivative – A financial contract whose value is based on, or derived from, another financial instrument (such as a bond or share) or a market index (such as the Share Price Index). Examples of derivatives include futures, forwards, swaps and options.

Search Results

Hedging Instruments

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
Futures and all other derivatives accounted for a negligible proportion of outstanding derivatives. ... The prevalence of forwards over other derivatives in currency hedging may reflect certain features.
https://www.rba.gov.au/publications/rdp/2006/2006-09/hedging-instruments.html

Limiting Foreign Exchange Exposure through Hedging: The Australian Experience

1 Aug 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2006/2006-09.html

References

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
Bodnar GM and G Gebhardt (1998), ‘Derivatives Usage in Risk Management by U.S. ... Group of Thirty (1993), Derivatives: Practices and Principles, Group of Thirty, Washington DC.
https://www.rba.gov.au/publications/rdp/2006/2006-09/references.html

Conclusion

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
Furthermore, overseas demand for Australian dollar assets has allowed Australian residents to further hedge their net foreign currency exposures back into local currency terms through the use of derivatives, insulating the
https://www.rba.gov.au/publications/rdp/2006/2006-09/conclusion.html

Hedging Practices in Australia

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
This has been facilitated by a greater use of derivatives to hedge exchange rate risk. ... Net exposure before derivatives. 153. 114. 97. 44. 6. 96. Net position in derivatives.
https://www.rba.gov.au/publications/rdp/2006/2006-09/hedging-practices-in-australia.html

Appendix A: Foreign Currency Exposure of the United States

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
While there is no information available for the US on the notional value of derivatives outstanding to augment this analysis further, we expect that hedging is far less important for the
https://www.rba.gov.au/publications/rdp/2006/2006-09/appendix-a.html

Introduction

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
These surveys provide comprehensive data on foreign currency exposures and hedging practices and indicate that both financial and non-financial firms use derivatives markets extensively to hedge their foreign exchange exposures
https://www.rba.gov.au/publications/rdp/2006/2006-09/introduction.html

Measuring Foreign Currency Exposure

31 Dec 2006 RDP 2006-09
Chris Becker and Daniel Fabbro
foreign currency terms, and finally the extent of hedging provided by off-balance-sheet derivative instruments. ... From Table 2 we know that the net position of banks in derivatives is $153 billion.
https://www.rba.gov.au/publications/rdp/2006/2006-09/measuring-foreign-currency-exposure.html