gains from hedging long-term bonds with interest rate derivatives. These bonds can help develop interest-rate derivative … interest-rate derivative markets, and their use by governments. Their stabilizing properties imply that, when bond prices fall …

flows. Specifically, we find that risk-off episodes coincide with forward hedging and reduced net short positions or a … coordination to address excessive exchange rate volatility might be limited in certain cases …

This paper examines the impact of changes in margin requirements on returns, transaction volumes, and price volatility … shift trade to the competing exchange. Price volatility or returns are not systematically affected by changes in margin …

countries. Proxies are focused on both spot and derivative transactions that alter the central bank's foreign currency position …

resulting welfare gains using a standard sovereign default model calibrated to Mexican data. We show that hedging increases … welfare by reducing income volatility and reducing risk spreads on sovereign debt. We find welfare gains equivalent to a …

balance sheet mismatches, a larger hedging market, and a lower exchange rate pass-through) …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare … through two channels. First, by reducing export income volatility and allowing for a smoother consumption path. Second, by …