LPL Financial (NASDAQ: LPLA) provides an integrated platform of proprietary technology, brokerage and investment advisory services to independent financial advisors, financial advisors at regional banks and credit unions, and advisors affiliated with insurance companies.
Caliber has provided services to LPL Financial since 2008 to calculate the fair value and expense amounts associated with interest rate swap hedges placed on LPL’s floating rate notes (FRNs). The hedge is split into multiple tranches with differing maturity dates. Hedge effectiveness can be tested using different methodologies such as the dollar-offset method or statistical analysis. Caliber uses sophisticated tools for valuing the hedge in accordance with ASC Topics 815 and 820, and presents the analysis in a simple, easy-to-audit format.