hedge-interest-rate-exposure

  1. Nicole Seaman

    YouTube T3-29: Hedge interest rate exposure with Eurodollar futures contract

    If we plan to borrow in the future, our exposure (risk) is to higher rates and the trade is a SHORT position in the Eurodollar (ED) futures contract (because higher LIBOR corresponds to lower Quote). If we plan to lend (aka, invest) in the future, our risk is lower rates and the trade is a LONG...
Top