The Following Best Describes a Foreign Currency Hedge:

I Cash flow hedge accounting - The effective portion of changes in the fair value of qualifying cash flow hedges are recognized in other comprehensive income or loss in the cash. The booklet summarizes leveraged lending risks discusses how a bank can prudently manage these risks and incorporates previous OCC guidance on the subject.

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The Group applies cash flow hedge accounting in the subsidiary Nu Pagamentos that is exposed to foreign currency risk dollar and euro on forecast transactions as described below.

. One of a series of specialized lending booklets of the Comptrollers Handbook Leveraged Lending supplements the general. This booklet describes the fundamentals of leveraged finance.

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