A hedge strategy is generated by applying a complex series of computations and mathematical algorithms. These hedge transactions that are implemented to construct a hedge position are unique in complexity from both a financial modeling and accounting perspective.

Implementing and managing a hedge strategy is both critical to the financial performance of a mortgage bank and involves an extremely complex set of calculations that is likely not within the skill-set of most lenders. This article is designed to provide an introduction to the value of hedging to your company.

Click here to continue to read the entire article written by Andy and David.