This question was closed without grading. Reason: Other
Jan 4, 2008 14:47
16 yrs ago
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French term
United Kingdom
couverture en ressources
French to English
Bus/Financial
Finance (general)
Company accounts
In the notes to a bank's annual report and accounts, the following sentence describes the treatment of "titres d'investissement":
"Ces titres font l'objet d'une couverture en ressources ou en taux."
I'm assuming that "couverture en taux" means they're covered by an interest rate hedge, but what about "couverture en ressources"?
Thanks in advance.
"Ces titres font l'objet d'une couverture en ressources ou en taux."
I'm assuming that "couverture en taux" means they're covered by an interest rate hedge, but what about "couverture en ressources"?
Thanks in advance.
Proposed translations
(English)
| 3 | resources coverage |
Narasimhan Raghavan
|
| 3 | equity cover |
Anne de Freyman (X)
|
| 3 | natural hedging |
Buzzy
|
Proposed translations
1 hr
Narasimhan Raghavan
Also a qualified engineer
Native in: Tamil
Works in: English to Tamil, Tamil to English, French to Tamil, and 6 more.
Related KudoZ points
:
21
resources coverage
See: 71 National Resources Coverage for Health Care/Medications
71 National Resources Coverage for Health Care/Medications ... 71 National Resources Coverage for Health Care/Medications ...
stason.org/.../health/body/organ-transplant/71-National-Resources-Coverage-for-Health-Care-Medications.html - 27k - Cached - Similar pages
71 National Resources Coverage for Health Care/Medications ... 71 National Resources Coverage for Health Care/Medications ...
stason.org/.../health/body/organ-transplant/71-National-Resources-Coverage-for-Health-Care-Medications.html - 27k - Cached - Similar pages
Note from asker:
| Thanks for your answer, but my gut instinct is that your context has nothing at all to do with the context of my question... |
1 day 2 hrs
equity cover
I'm really not sure but it seems to fit the bill in the context of shares and risk management.
Peer comment(s):
| neutral |
rkillings
: Unlikely. A bank's 'ressources' are its sources of funds (deposits, interbank borrowings), which are liabilities, not equity.
4 hrs
|
|
http://www.vernimmen.com/html/glossary/definition_shareholde...
|
1 day 5 hrs
natural hedging
I agree with you that this is to do with hedging; first I thought of "commodity hedging" but surely that would be "en matières premières" and anyway would it be very relevant for a bank?
Then the term "natural hedging" came back to me, ie when they cover the risk by associating the securities with some other transaction but which doesn't qualify for hedge accounting. Unless I'm still stuck in an old version, it doesn't seem to be a term directly included in IAS 39, but the website iasplus uses the term, see
http://www.iasplus.com/iasplus/iasp0201.pdf
Also found this definition:
http://www.americanbanker.com/glossary.html?alpha=N
natural hedges
Balance sheet hedge activity done by altering asset and/or liability repricing characteristics or volumes to reduce the entity's interest rate risk exposure without purchasing derivative hedge instruments such as interest rate swaps or futures. The opposite of natural hedging is capital markets or derivatives hedging. Note that some bankers use the term "natural hedges" more narrowly than others. As narrowly defined, a natural hedge is one in which the rate risk in one piece of customer business is offset by the rate risk in another piece of customer business. Thus a hedge involving the investment portfolio is not a natural hedge under the most narrow definition of the term.
Finally, you've presumably seen it already, but the CIC annual reports available online translate this concept as "match funded". To me that sounds odd, more like finding extra funding rather than hedging risks, but I'm willing to be corrected.
Time to check the exact meaning with the client perhaps?
Then the term "natural hedging" came back to me, ie when they cover the risk by associating the securities with some other transaction but which doesn't qualify for hedge accounting. Unless I'm still stuck in an old version, it doesn't seem to be a term directly included in IAS 39, but the website iasplus uses the term, see
http://www.iasplus.com/iasplus/iasp0201.pdf
Also found this definition:
http://www.americanbanker.com/glossary.html?alpha=N
natural hedges
Balance sheet hedge activity done by altering asset and/or liability repricing characteristics or volumes to reduce the entity's interest rate risk exposure without purchasing derivative hedge instruments such as interest rate swaps or futures. The opposite of natural hedging is capital markets or derivatives hedging. Note that some bankers use the term "natural hedges" more narrowly than others. As narrowly defined, a natural hedge is one in which the rate risk in one piece of customer business is offset by the rate risk in another piece of customer business. Thus a hedge involving the investment portfolio is not a natural hedge under the most narrow definition of the term.
Finally, you've presumably seen it already, but the CIC annual reports available online translate this concept as "match funded". To me that sounds odd, more like finding extra funding rather than hedging risks, but I'm willing to be corrected.
Time to check the exact meaning with the client perhaps?
Peer comment(s):
| neutral |
rkillings
: Could be. A bank's 'coverage' of its assets by liabilities would then be the reverse of an insurance company's. But is it hedging?
1 hr
|
Discussion
BusterK - the country is France and it seems to be a hotch-potch of GAAP and IFRS/IAS, I'm afraid.