Anticipatory Hedge

Anticipatory Hedge

An investment or other transaction one makes in order to hedge against (or reduce the risk of) another investment or transaction one intends to make in the future.
References in periodicals archive ?
The new contract will be useful to Bond traders, Prop traders and Hedge Funds, Asset-liability managers, Bond portfolio managers and Treasuries, in the management of book exposure, asset allocation and duration, management of existing debt and anticipatory hedge.
And even if anticipatory hedge accounting is acceptable for foreign currency options, what does the CPA do with instruments such as foreign exchange participating forwards and range forward contracts that have elements of both options and forwards?
The prohibition of anticipatory hedge accounting in Statement no.
5 million gain resulting from the anticipatory hedge transactions entered into in December 1996 and structured to mature in coordination with this refinancing.
DENVER, April 3 /PRNewswire/ -- Apartment Investment and Management Company (NYSE: AIV) ("AIMCO") announced that it has entered into another $100 million anticipatory hedge transaction in order to fix the rate on an additional $100 million of floating rate debt, in anticipation of the debt being refinanced on a long term basis during the third quarter of 1997.
1221-2(e)(3)(ii) and (iii) provide additional identification requirements for inventory hedges, hedges of debt, anticipatory hedges of debt instruments and assets, and hedges of aggregate risk.
Taxpayers should be able to enter into anticipatory hedges of future sales income.