Market Monitoring

Ponder & Co. continually monitors the derivative markets to keep abreast of the latest developments and pricing levels.

FAS 133 Reporting – Performed In-House

• Valuation of "actual" swaps
• Valuation of the "hypothetical derivative" for fixed payer swaps
• Regression analysis to determine if a swap qualifies as a cash flow hedge or fair value hedge
• Cash flow reports comparing swap income and bond interest expense
• An independent third party valuation to satisfy audit requirements
• Fair market value letters for board and bond counsel

Risk/Performance Monitoring – Customized and Performed In-House

• Mark-to-market reports and history
• "Value at Risk" modeling
• Stress testing
• "What if?" scenarios
• Portfolio approach or single trade