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Hedging federal farm credit bonds
Author(s) -
O'neil J. C.,
Akridge J. T.,
Dobson W. D.
Publication year - 1991
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199111)7:6<563::aid-agr2720070606>3.0.co;2-2
Subject(s) - bond , variance (accounting) , economics , corporation , business , actuarial science , interest rate , finance , econometrics , financial economics , accounting
Three strategies for hedging Federal Farm Credit Bonds were evaluated using data for March 1985 through March 1989. The barbell strategy presently used by the Farm Credit Bank's Funding Corporation and a price sensitivity strategy performed equally well for meeting the mean and variance standards employed in the study. The preferred hedging strategies identified could be used to advantage by the Farm Credit System for expanding use of fixed interest rate loans.