Hedge quality


 

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Hedge quality

Measured by the R-square in a regression of spot rate changes on futures price changes.



Hedge quality

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Quality Characteristics

Quality Characteristics

Characteristics of the output of a process that are important to the customer. The identification of quality characteristics requires knowledge of the customer needs and expectations.


Flight to quality

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The tendency of investors to move toward safer investments (often government bonds) during periods of high economic uncertainty.


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A measure of the likelihood of default. Rating agencies assign letter designations such as AAA, AA, and so forth.


Key Quality Characteristic

Key Quality Characteristic

The most important quality characteristics. The KQCs must be operationally defined by combining knowledge of the customer with knowledge of the process. KQCs are measured to understand the actual performance of the process.


Quality option

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Gives the seller choice of deliverables in Treasury bond and Treasury note futures contracts. Also called the swap option. Related: Cheapest to deliver issue.


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Quality Planning/Redesign
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