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Hedge of net investment in foreign subsidiary

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Reference no: EM133272748

The following questions are based on these facts: "The first one is a pay-fixed, receive-floating interest rate swap transaction we enterey Into on December 1 of last year. In this transaction, we have locked in our payments at a fixed interest rate in exchange for receiving payments that wil luctuate based on movementsin market rates. This was aligned with our December 1 borrowing of $1,000,000 at an annual rate of SOFR+ 3%. As of the end of December we had an unealized loss of $15,000 on this swap.

Is this a fair value hedge, cash flow hedge, or a hedge of net investment in a foreign subsidiary?

Reference no: EM133272748

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