CUSTOMER STORIES Swap Dealer Needed Hedge Accounting Assistance Challenge A large dealer had several large public corporate clients who required hedge accounting treatment for their interest rate derivatives. The dealer could not assist their clients in providing pro forma accounting analysis, hedge documentation or ongoing accounting reporting. The lack of in-house hedge accounting resources put the dealer at competitive disadvantage. Transactions that required hedge accounting were often lost to competitors who were able to provide accounting expertise. Solution The dealer partnered with Derivative Path to expand its hedge accounting capabilities. The dealer’s sales desk was given access to DerivativeEDGE, Derivative Path’s state-of-the-art hedge accounting platform, and to DPI’s seasoned group of hedge accounting experts. The dealer also gained the ability to refer clients to Derivative Path’s hedge accounting reporting platform which provides hedge inception documentation along with ongoing journal entries and effectiveness assessments.
