Hedging transactions
74 Hedging transactions
The Authority, with the Treasurer’s approval, may, for the purpose of managing, limiting or reducing perceived risks or anticipated costs in connection with the exercise of any power conferred by section 75 —
enter into an agreement or arrangement to effect any of the following transactions —
a foreign exchange transaction;
a forward foreign exchange transaction;
a currency swap;
a forward currency swap;
a foreign currency cap, a foreign currency collar or a foreign currency floor;
a forward interest rate agreement;
an interest rate swap;
a forward interest rate swap;
an interest rate cap, an interest rate collar or an interest rate floor;
an option for interest rate or currency management purposes;
a futures contract or a futures option;
any other transaction that is approved in writing by the Minister, with the Treasurer’s concurrence, as a transaction to which this paragraph applies or is of a class that is approved in writing by the Minister, with the Treasurer’s concurrence, as a class of transactions to which this paragraph applies;
or
enter into an agreement or arrangement to effect any transaction that is a combination of —
2 or more transactions permitted under paragraph (a); or
one or more transactions permitted under paragraph (a) and one or more transactions permitted under section 75.
In subsection (1)(a) —
interest rate includes coupon rate, discount rate, and yield.
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