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  1. SAP Glossary
  2. Hedge Processes
  3. spread dependent on financial instrument


What is spread dependent on financial instrument in SAP (FS-BA-PM-HP - Hedge Processes)?


SAP Term: spread dependent on financial instrument

  • Component: FS-BA-PM-HP

  • Component Name: Hedge Processes

  • Description: The non-maturity-dependent interest rate by which the yield curve, which consists of the basic curve and possibly an exogenous spread, is shifted so that discounting the cash flow results in the acquisition value.


Smart SAP Assistant

  • Key Concepts: 
    Spread dependent on financial instrument is a component of the FS-BA-PM-HP Hedge Processes in SAP. This component allows users to define a spread for a financial instrument that is dependent on the market rate of the instrument. This spread can be used to calculate the hedge rate for the instrument. 
    
    How to use it: 
    To use this component, users must first define a spread for the financial instrument in question. This spread can be based on the market rate of the instrument or any other criteria that the user wishes to use. Once the spread is defined, it can be used to calculate the hedge rate for the instrument. 
    
    Tips & Tricks: 
    When defining a spread for a financial instrument, it is important to consider how volatile the market rate of the instrument is. If the market rate is highly volatile, then it may be beneficial to use a more conservative spread in order to ensure that the hedge rate remains accurate. 
    
    Related Information: 
    For more information about this component, please refer to SAP's documentation on FS-BA-PM-HP Hedge Processes. Additionally, there are many online resources available that provide further information about this component and how it can be used in SAP.
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