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Criterion B9: Currency and Interest Rate Asset and Liability Mismatches (Transaction Level)

Effective from Dec 28 2022 - Dec 31 2022
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18.135To reduce the payment risk arising from the different interest rate and currency profiles of assets and liabilities, if any, and to improve the sponsor’s ability to analyze cash flows of transactions, the sponsor should ensure that interest rate and foreign currency risks are appropriately mitigated. The sponsor should also ensure that derivatives are used for genuine hedging purposes only and that hedging transactions are documented according to industry-standard master agreements.