Abstract: Compensatory ratio hedging is a methodology whereby an amount of a bond that is hedged by a swap varies during the life of the swap, per a predetermined schedule, such that the change in the swap's mark-to-market dollar value is equal to the change in the bond's market value caused by an equal change in interest rates. The amount of bond being hedged by the swap will vary over a predetermined period of time to compensate for the differences in swap and bond valuation drivers. This methodology establishes a hedge such that an interest rate change has a similar dollar impact on the swap mark-to-market value and the bond mark-to-market value thus curtailing some reporting implications of Financial Accounting Standards No. 133 of the Financial Accounting Standards Board.

Abstract: A method of providing a financial recommendation for a business entity includes providing a first set of constraints for a first set of financial categories having at least two spending categories. Predicted values for each of a plurality of financial categories that include at least the first set of financial categories are provided for at least a portion of a business cycle. The predicted values provided satisfy the respective first set of constraints. Based on at least one of the predicted values, at least one financial indicator value associated with at least one period of the business cycle is calculated. If the at least one financial indicator value satisfies the at least one desired financial rating for at least the portion of the business cycle, then at least one of the predicted spending values is provided as a first set of recommended future spending values.

Abstract: Compensatory ratio hedging is a methodology whereby an amount of a bond that is hedged by a swap varies during the life of the swap, per a predetermined schedule, such that the change in the swap's mark-to-market dollar value is equal to the change in the bond's market value caused by an equal change in interest rates. The amount of bond being hedged by the swap will vary over a predetermined period of time to compensate for the differences in swap and bond valuation drivers. This methodology establishes a hedge such that an interest rate change has a similar dollar impact on the swap mark-to-market value and the bond mark-to-market value thus curtailing some reporting implications of Financial Accounting Standards No. 133 of the Financial Accounting Standards Board.