Hedge Effectiveness

Maintain Effective Hedges. Minimize Earnings Volatility.

Hedge effectiveness requires precision, visibility, and ongoing oversight. TBSM’s solutions are engineered for the full complexity of Canada’s financial landscape—and beyond. Through automated hedge effectiveness testing, valuation, and reporting, our solutions empower institutions and lenders to reduce operational burdens, maintain compliance, and minimize earnings volatility.

“First Nations Bank of Canada (FNBC) has enjoyed a long-standing and positive relationship with Treasury and Balance Sheet Management Inc. (TBSM). We value their deep understanding of the Canadian banking environment and their ability to provide practical treasury and risk management solutions. Just as importantly, the TBSM team is knowledgeable, accessible, and genuinely committed to supporting its clients. Their combination of industry expertise, responsive service, and a collaborative approach has made TBSM a trusted and valued partner to FNBC.”

Cheryl Foster

Chief Financial Officer, First Nations Bank of Canada and FNB Trust

What Our Clients Say About Us

Our clients rely on our treasury expertise to simplify hedge accounting, strengthen reporting, and maintain effective hedging relationships. We partner to equip institutions and lenders with the oversight to reduce complexity, improve confidence, and manage financial risk with greater precision.

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Automated Hedge Effectiveness Testing and Reporting

Enhance Visibility Across Hedging Relationships

TBSM’s hedge effectiveness testing solutions equip institutions and lenders with the tools, support, and intel to streamline derivative compliance, reduce manual spreadsheet workloads, and maintain audit readiness. Through automated calculations and reporting, our clients can evaluate hedge relationships using prospective tests and retrospective tests, assess hedge ratios, and identify basis risk with greater accuracy and efficiency.

Expert Hedging Solutions for Greater Risk Control

TBSM offers a fully Canadian hedging solution that combines elite treasury expertise with advanced technology. Our clients are equipped to evaluate hedge ratios, assess the relationship between the hedged item and associated risk exposures, and strengthen governance. This enables more informed decision-making, improved control, and greater resilience in evolving market conditions.