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Revision as of 00:54, 23 June 2017
Introduction
Hedge.lu is a resource website aimed at providing relevant finance cases to professionals, academics, and students. There is much to learn from past history, and knowing precise events is a great ally in any argument.
The name "Hedge.lu" comes from two independent reasons and motives: the first one is that this domain was unused, whereas it looks and sounds great. The other half of the explanation is that most of the finance cases which have had a large impact on how we run a firm today from a financial standpoint involved huge failures in hedging programs. That makes Hedge.lu the perfect place to talk about such things!
List of Content
| Title | Firm Involved | Year | Keywords |
|---|---|---|---|
| When a lack of hedging leads to ruin | Slite | 1992 | SEK, DEM, Currency, Hedging |
| Disguised speculation | American Barrick | 1993 | Hedging, Derivatives, Oil |
| Matching cash flows and the importance of accounting | Metallgesellschaft | 1993 | Hedging, Derivatives, Oil |
| The appropriateness of hedging instruments | PacifiCorp | 1997 | Hedging, Currency, Forwards, Options |
| The dangers of leverage | LTCM | 1998 | Convergence, Crisis, Volatility, Hedge Fund |
| The costs of a flawed hedging program | Ashanti Goldfield | 1999 | Hedging, Gold, Speculation |
| When hedging becomes speculation | Air Products and Chemicals | 2000 | Hedging, Currency, Forwards, Options |
| M&A integration and CEO hubris | Worldcom | 2002 | M&A, Synergies, Integration, Governance |
| When price deviation never corrects | Amaranth Advisors | 2006 | Futures, climatic catastrophe, natural gas |
| How not to insider trade | Millenium | 2008 | Options, Insider Trading |
| Picking pennies in front of a steamroller | AIG | 2008 | CDS, subprimes, crisis, bailout, insurance |
| The importance of getting dividends right | Virtu Financial | 2014 | Corporate Actions, Dividends, Accounting, HFT |
| Listing a Chinese business in the US | Alibaba | 2014 | Listing, IPO, China, Foreign Entities, Governance |
| The impact of cultural heritage on governance | Toshiba | 2015 | Corporate Governance, top-down pressure, accounting, scandal |
| Creating value by splitting businesses | Paypal | 2015 | Spinoff, Activist investor |
| The reach of US law & Bond covenants | Elliott Capital Management | 2016 | Pari passu, Bonds, Argentina, Hedge funds, Covenants |
| HFT Thrive off complexity | IEX | 2016 | Stock Exchange, Speed bump, Market Structure, HFT |
| The Economic rationale behind spinoffs | Yahoo | 2016 | Spinoff, Investment, Participation |
| Broker prices are unreliable | Saba Capital Management | 2017 | Broker Prices, Fair Value, IFRS 13, Corporate Bonds |
| The dangers of inappropriate goal setting | Wells Fargo | 2017 | Corporate Governance, Goal setting, Incentives |