Union Carbide Corp.: Interest Rate Risk Management (294-057)

Tufano, Peter (1994) Union Carbide Corp.: Interest Rate Risk Management (294-057). [Case]

Abstract

Union Carbide's board of directors is asked to evaluate a proposal from the staff treasurer's that would articulate policies to manage its debt portfolio. The staff proposes that shareholder value will be maximized if the firm manages its exposure to interest rates by matching the duration of its liabilities to that of its assets. Based on statistical analysis, examination of rivals' policies, and reasoning, they argue that the firm, establish a benchmark duration for its liabilities against which all future active management activities be measured.

Item Type: Case
Keywords: finance, accounting, business law
Subject(s): Finance
Date Deposited: 01 Apr 2016 13:06
Last Modified: 01 Apr 2016 13:06
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6045

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