Use Reval to help mitigate P&L volatility resulting from commodity hedges.
Commodity hedgers face hurdles when complying with hedge accounting standards such as FAS 133 or IAS 39. One hurdle is basis risk. Companies must account properly for basis risk, the differential between the original exposure and the hedging derivative. Reval recognizes that accounting standards require that the total price risk must be hedged and not just the variable price of the commodity. Reval’s Software-as-a-Service (SaaS) Web-based platform offers the analytical tools that allow commodity-hedging clients to adjust for basis risk and provide the appropriate documentation.
Use Reval to perform advanced regression analysis.
Clients can combine the independent commodity market data published daily by Reval with regression analytical tools. The result is an improved ability to assess and measure retrospective hedge effectiveness over the hedge’s life and resolve the issue of basis risk.
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To learn more about Reval’s solutions for commodity hedgers, have a Reval Solutions Consultant contact you >>
