THE POPULARITY OF PORN TWITTER

PornTwitter has attracted many people to be its followers. Considering that every person cannot be separated from a sexual life, the presence of this particular of twitter account is a kind of helpful. Within 140 characters, we can receive any information related to adult contents and porn industry. There are even porn contests information shared through this twitter account. Knowing that every person can be a new follower of this twitter account, adults or parents should keep an eye on their children who have a twitter account. It can be quite dangerous if children are following porn twitter. Therefore, there are reasons that make this twitter account more popular from time to time.

Unlike adult website or adult blogs, http://twitter.com/pornoffers a better alternative. People can be more selective to choose or view a particular adult content from twitter account. For example, porn twitter has made some twits relating to some shops providing sex toys. If you have no plan to buy any sex toys, you can simply skip it and find other twits. It will be quite time saving and more practical. In addition, you can receive kinds of the most updated and latest information related to sex industry in the meantime. Porn twitter contains a variety of updates relating to porn movies, porn videos, and adult contents. That is why many people eager to be the followers as they want to get the hottest information or issues related to it. Furthermore, the easiness of people to just click the follow button makes porn twitter gains lots of followers in a very short time.

To sum up, porn twitter is popular because it offers a more practical way than adult websites or adult blogs to share and exchange information related to adult contents, porn companies, porn entertainment, and porn industry.

Shopping for GPS Fleets

Making the choice to upgrade your business management system so that you have a state of the art fleet management system is one of the best ways to improve how your business operates. GPS fleets are offered by a wide variety of vendors and it can be difficult trying to choose the right service provider. There are a few things you should take into consideration when you get ready to purchase GPS fleet for your company.
An important aspect that you need to make sure you are getting is navigational support and functionality. Learn about how the different fleets differ in their functions and navigation abilities. You want to use equipment that will allow you to do more than remotely monitor, you want to be able to have some sort of control on your trucks as well. Make sure that any maps the equipment uses are updated in real time and if there are any additional features that may be of beneficial use for your company.
One area that tends to get overlooked is power supply. Any GPS fleets equipment you ultimately decide to purchase should also have a power supply that is built in to it. By having a built in battery, you have the ability to manage your vehicles for at least several hours after charging it just one time.
Cost is something that needs to examined carefully. Pricing varies greatly between the different vendors for GPS fleets. You need to find the best solution that actually fits with your business budget. It doesn't make sense to invest in equipment that may be too expensive for you to own, manage and maintain for your business. Any vendors that cost too much, you need to remove them from your list of companies to consider. Remember your goal is to reduce your expenses by making a good investment and even though most good investment may cost a pretty penny, you should not be overextending yourself with the most expensive GPS fleets. There are plenty of equally qualified vendors that are much more affordable. You should take a look at those options instead.
Keep in mind that you are going to need to train your employees on how to operate the units. Depending on who your vendor is training can become expensive. It is a good idea to ask the different vendors about any discounts or free training sessions that may be available to help reduce your costs and gain your business.
Features are very important. Most of the standard features of GPS fleets come capable of providing alerts for speeding, two text message systems, create custom reports, and an alert that notifies you when your employees wander off a location or route. If you want additional features such as the ability to control the ignition or any other functionality that you feel would be of great use to your business, it may cause your costs to go up. Don't forget to make sure that any vendor you contract with has an exceptional customer service department can assist you if there are ever any problems.

The Benefits of Using GPS Fleets Management

There are many benefits to using GPS fleets management in your business. If you are in need of ways to increase employee safety, increase the security on your vehicles, protect your investments and save money, you are on the right track. By taking the time to improve your business operations by investing in GPS fleets management, you can increase your profits and create stability for your company.
Many key functions of your record keeping system can be automated to reduce the amount of errors and increase accuracy that are being registered and causing discrepancies in your records. There is no need for you to hire and train a specialist to keep tabs on your records or to perform audits to make sure that everything is in order. The new management system takes care of it for you. You can increase the amount of work that is being performed without having to pay for more work time. By scheduling and verifying every vehicles location, equipment and shipments, you will know exactly where you can improve performance and efficiency. You can also improve the performance of your vehicles by keeping track of the necessary service needs.
It has become much easier for you to monitor your service operations no matter where they are located. The minute that any equipment or ships are moved, delivered will be recorded down to the second. You can even increase the speed of your employees routes by learning which ones are faster and have less traffic and delays. With GPS fleets management systems, you don't have to worry about employees inflating their hours. All employee time records are electronically recorded and you can stop losing money through labor irregularities. Mileage is also monitored and recorded electronically so if you are paying any costs based off of mileage, you are not being bamboozled. Increase employee honesty and accountability.
Depending on the type of GPS fleets management system you decide to use for your business, you may be able to do more than just monitor the mobile aspects of your business. Some versions allow you to control how fast the vehicle is being operated. This can reduce your maintenance expenses since there will be less wear and tear on your equipment. This will also reduce your fuel costs as well.
Perhaps what is considered to be one of the best reasons to incorporate the use of GPS fleets management into your transportation vehicles is the fact that it allows you to crackdown on any unauthorized use. You will be able to tell if an employee went off route or somewhere they weren't supposed to by simply looking at the mileage. You can then take the appropriate disciplinary steps to ensure that it does not happen again. You shouldn't have to pay for their abuse and improper use of company vehicles. Improve the way your business is run and increase your revenue while reducing other expenses to make your company more stable and competitive in today's economy.

Lose Little With Hedging - A Binary Options Trading Strategy

The popularity of binary options is owed due to the fact that any risk associated with the trade is calculated and predetermined. However, even with the calculated risk, no trader wants to end up on the 'loss' side of the outcome. Hence, different strategies are employed by traders to make their binary trading options more profitable; one of these techniques is Hedging.
Hedging is used to reduce any possible losses, and maximize the gains incurred by any organization or individual. In the case of binary options, traders use hedging to reduce risk of investment to the lowest possible. To do this, they use methods like call and put options, future contracts or short selling techniques. Through this, they are able to secure their existing profit and diminish the instability of any portfolio, so that whatever profit they already have, will not be lost. Hence, a combination of hedging and binary options yields the best profit and lessens loss.
Binary options as a trade are short-term in nature, which means that their trading life is usually of an hour or a day, at the most. Since time is a constraint here, the decisions which yield profit from your binary options needs to be made carefully. This is where partial hedging or complete hedging comes into play. The price and total profit of a share has a value which can be gained before the time expires, by either keeping or selling the shares. At this point, careful use of the call and put options can take the profits to double amount.
In binary trade, complete Hedging means to sell off all the shares as soon as the profit is at its maximum within the hour, so that the total profit can be maximized. Partial hedging is meant for selling half of the shares and keeping the other half before the hour expires. In this manner, even though there is still some risk involved, but it is reduced by half the percentage, as compared to keeping all the shares. Partial hedging is used in binary options when the prediction is in line with what the trader needs. Hence, the risk on the shares sold is diminished, and those kept can be minimized through correct prediction.
This is a relatively simplistic binary trading strategy, which assists traders in making good profits and eliminating risks. The hedging technique is not only used by binary brokers, but also by many other financial instruments like swaps, forward contracts, insurance etc. When trading in binary options, familiarizing yourself with hedging is valuable in order to utilize its benefits.

A Guide to GPS Fleet Tracking

Owning and operating transportation or a shipment business can get very complicated since much of your company's success rests on your drivers ability to navigate in the world of driving. Keeping tabs on where your products, vehicles and drivers can be pretty tricky and even cost you money. Thanks to the invention of GPS fleet tracking, you can use special equipment to know what is going on, exact locations and more about your fleets without breaking your budget. Not only do you the owner get to benefit from the use of GPS fleet tracking, your drivers can benefit as well, especially if they are new to the job, not familiar with the route or territory they are in or simply lost. They can get to where they need to be without any problems.
Many companies have chosen to use portable devices that can be moved from one vehicle to the next without difficulty. This is especially helpful if you have a certain amount of units on hand and not enough to accommodate all of your drivers at one time. Even when clear or direct route is not known and your drivers need assistance determining what is the best way to get to their destination, they can use the device to give them real time GPS navigational instruction which provides turn by turn best route directions. It can also provide where the closest fuel station and rest stops are.
GPS fleet tracking systems are now a standard in businesses that are successful. If you want to increase your profits and help get your business to where it needs to be as far as operations and efficiency, you may want to consider incorporating this type of system into your daily operations.
You need to determine what your actual needs are. Are you in need of a simple tracking solution or do you need a more sophisticated system? The best way to make that decision is make a list of pros and cons for each type of system and the one that offers you the most benefit is the one you should look for.
What kind of reporting and record keeping do you expect or want? Remember, many GPS fleet tracking systems can provide tracking information in short intervals or in long intervals. If you just want an accounting every few hours, then long interval reporting is what you need and vice versa if you want up to the minute reporting. The frequency of reporting also plays a factor in costs. The more frequently your reporting is done, the higher the cost. Regardless of the type you choose, pick one that accommodates your company's needs.
Make a budget and do your best to stay within it. Keep in mind that initial investments into mobile management systems may seem expensive but they do more that pay for themselves in just a few short months. With all of the savings that you gain in more accurate time recording, mileage reports, reduction in operating costs, increase in employee accountability and reduced fuel and maintenance costs; you will see how much GPS fleet tracking can improve your complete operations and profitability.

Increase Your Business Security

With crime rates increasing every day, it is very important that you take the time to increase your business security systems. It doesn't matter if you have everything insured; it is more logical and less expensive to protect your products and company against theft and damage. Everywhere you go you see and hear the importance and benefits about how security systems can protect your assets. Isn't it about time that you see firsthand how much safer your company truly is with enhanced business security?
You need to take into consideration what type of surveillance and alarm systems will keep intruders out and keep tabs on your possessions. You want to select a system that works with any alarm systems or surveillance methods you already have in place. The goal is to enhance your business security and secure all of the potential gaps in your security. In some cases this will mean that you have to upgrade what you currently have to something that is more technologically advanced and sturdy.
If you are not an expert or savvy at determining what kind of business security to invest in, then you can always resort to hiring a consultant that can take an assessment of your facilities and show you where improvements and modifications should be made to increase the safety of your company. They can also provide you with suggestions and additional resources to increase the safety of your facilities without having to invest a lot of money in the process.
There are many different types of systems available and some may not be worth your time or money. Take notes of the areas your company could use the extra surveillance. Think about what kind of products you have and whether or not you can benefit from having GPS or satellite tracking if you are in the export or import sector. You can keep tabs on your staff and better manage them without actually being present. Make sure you train the appropriate staff on how to use your alarm systems to increase the efficiency of your company's protection.
Keep in mind that the better the business security system you decide to use, the more it may cost to purchase and run. Of course these expenses are still far cheaper than if you constantly had to pay for damages, lost items and injuries that may occur on your property. Even though you only want and expect everyone who comes into your establishment to respect the property and be mindful of everything that is in it, there are always some unsavory individuals who go around seeking to profit off of someone else's hard work. You can't afford to take risks, since you are looking to run and maintain a healthy and successful company, you need to make sure that you give it every chance possible to succeed. It is your responsibility to protect your business ventures and your employees and the best way for you to do so is to invest in the right kind of equipment.

How to Select the Best Video Security Systems for Your Home

Shopping around for video security systems is a task that you should set aside some time for. Since you will need the best equipment to protect your family and your home, it is only fitting that you start researching the products and services that are available. You will need to learn about the different companies that offer different types of video security systems to monitor your property. You will need to make a list of questions to learn about the different types of service you can choose from and determine how it will suit your needs. Make a list of pros and cons before you commit to any company. Keep in mind that many companies do offer a trial period on many of their video security systems and services.
Even though some companies may offer promotions where you can get free equipment for signing up for their service or free installation, if you take the time to read the small print, you may find that you are actually entering a contract where you are obligated to use their service for a specified amount of time. You can always back out of the contract, but usually in order to do so you have to pay a huge termination fee. Many of those too good to be true offers only provide you with very basic equipment and services that may not offer you all of the protection you need.
Since this may be your first foray into shopping for video security systems, you don't want to subject yourself into shopping where the customer service and sales team uses high pressure sales tactics to force you into making a decision when you are merely window shopping and gathering information. Some of the most well known tactics include falsifying crime statistics in your area and creating a false sense of panic and insecurity. If you find that you are being helped by a salesperson who is not being tactful enough to help you shop for video security systems that fit your personal needs, then you can either request a new one or go elsewhere where you time and business is valued more.
Since this is an investment that you are making in your home, it is only right that you get equipment that you feel happy and comfortable with. Don't get something that you may have trouble learning how to use. Keep in mind that no matter what type of equipment you choose, training is provided to help you get more comfortable with the your homes new monitoring systems. Consider getting equipment that is also has other benefits that make it much easier for you to know the status of your home security at any given time. Many of the new state of the art systems have apps and software that allow you see what is going on from any location in the world. Some even allow you to operate your systems while you are not home. Before you commit to a long term contract, try going with a company for at least three months first, so you can evaluate how well you like the service without feeling tied into a service that may not offer you all you need.

Cool Air At Work

First impressions with customers are important. They truly notice and make note of their first impression at a business or office and they remember it the next time they consider returning. So, what do customers consider when they enter a commercial place for the first time?
-They notice the appearance of the building/office as they arrive and gather information on how appearance appeals to them specifically.
-As they step into the building, customers notice the atmosphere by gathering information through the senses--what does it smell like? is the space comfortable and the air cold or hot? do you see tidiness or less organized spaces?
-Customers react to the friendliness of the staff and base many decisions on how enjoyable the staff is to interact with.
Customers consider nearly every aspect just as they step into an office or building and they do most observing subconsciously. The one aspect we want to focus on is the feeling of the atmosphere. Are customers pleased with the air they feel when they step into a building? And why is this important? Because customers want to feel comfortable as they sit and interact with the staff. If it's too cold or too hot, customers will be anxious to leave and you don't want those feeling for your customers, as a business owner.
So if air quality and temperature is extremely important, how do you take steps to regulating this aspect and making it as comfortable as possible? Well, you make sure you have a reliable A/C unit controlling your commercial area, especially the space customer occupy. Make sure the unit is relatively new and functioning properly. If you know your air conditioning is outdated, then you should replace the unit soon.
Once you get a quality unit installed in your business area, you will want to regulate it properly. There are certain temperatures that work best for most people. What is comfortable for you may be different than the lady across the room, so it's important to get opinions from everyone. You can ask your customers if they are pleased with the temperature and ask how to better regulate the temperature if they aren't pleased.
Now you should have some good feedback and be able to regulate a good working A/C system according to what your customers want. Creating a comfortable atmosphere is crucial to business success. This isn't a myth, it's reality, so work hard to please your customers.

Why Dry Cleaners Should Emphasize Social Media

At the present, a lot of small business owners including those in the dry cleaning business are now resorting to learn how to acquire maximum results from their business online through the use of social media. Due to the huge number of small businesses present online, it is quite difficult to stand out and distinguish which dry cleaning services is the right one for your needs. Do not be discouraged. In order to succeed with the dry cleaners business, you should learn the proper methods by incorporating social media when it comes to the marketing of your business. Take note that many people rely on the Internet in finding the services that they need. With improved visibility due to social media, you will surely gain more clients in the long run.
Dry cleaners should emphasize online media since it is one way of gaining exposure online. You have to take note that one effective way to obtain credibility and following online is to build your presence by using social tools. Remember that the world of social media is vast and you can use it to your own advantage in making your business grow.
You have to be familiar with the basic rules. There are certain tips that can guide you with future decisions and actions so that you will not lose track on what you are trying to accomplish with your dry cleaners business. Initially, in order to market something online including the social media, you need a product or service. Of course, you already know what services you are offering - dry cleaning. Next, you should have a specific objective. You should know what you want to do with your business. If you chosen social media as the marketing tool, you have to understand how various networks function so that you can effectively utilize them to your advantage. With a specific objective, it can help you plan out strategies.
Of course, you have to learn your plan. Unless you have acquired extensive exposure to online marketing strategies and SEO, then online marketing is not a confusing task to handle. You have to list down what you want to learn so that you will gain familiarity when using social media for marketing. There are a lot of sources where you can learn on how to make the most out of online media for your dry cleaners business. Just make sure that you will schedule the items that you need to learn, in doing so, the new information that you will acquire will not get all mixed up and end up confusing you.
Remember that these tips should give you a jump start in social media, especially if you are not fully aware of its uses and functions. If your intention is to gain more awareness for your dry cleaning business, you should master these tips and in no time, you will fully understand what you are doing. You will definitely gain the exposure that your dry cleaning business needs as well as making it stand out from the rest of the competition.

Learn About AC Installation

Air conditioning is one of the greatest inventions, especially for parts of the country that are extremely hot and humid. A/C makes life much more comfortable, but the moment a unit goes out and the heat returns, it's unbearable. To prevent inconveniences such as the breaking of a unit, it's important to have a quality unit installed and maintained for years to come. This will ensure quality A/C for you and your family.
When you decide to purchase a new unit and have decided on the make and model, it's crucial to pick the right company for installation. A/C units are only as good as the installation. Most encounter difficulties with units not because they are poor quality but because installation was poor. So, knowing that information, begin looking for a company with proven installation and satisfied customers.
As the time for installation rolls around, what will take place? If you have never had an A/C unit installed then you don't know what to expect and what the installation company should do. Here's what to expect from a quality company:
-The A/C unit, along with parts and tools are brought by the installer. You aren't expected to haul the unit and any additional parts to your home prior to installation.
-All equipment is unloaded at your residence and inspected for damage or malfunction. This is an important step because faulty equipment does not need to be installed. Installation professionals must check equipment constantly for quality.
-Installation begins, leaving you without A/C for an hour or two, depending on the installation professional. This must take place so the old unit can be removed and the new unit hooked up properly.
-When the unit is installed, the installation professional will test the unit and make sure it functions at each level. Testing each function, the professional will troubleshoot any problems and check for malfunctions.
-Once the unit is in good working order, the professional will discuss the details of the system with you and explain basic functions for daily use. If you have questions about the system--speak up and don't let the professional leave until you have answers.
-Lastly, the air conditioning professional will clean up the installation area and remove any debris. Some companies will haul old equipment away for you and it's important to ask the professional to take your old system. This reduces the hassle of removing it yourself.

The Environmental Considerations Of Daily Business Activities

It is not always part of a typical business day to consider all the various activities which take place which can destroy the environment. All too often the business practices of any given company addresses the biggest and most common issues but does not address the smaller, lesser known issues of which have a strong impact. Until a business commits to a full environmental audit, they can not truly be environmentally sound.
Everyday activities devoted to helping a company function can be addressed in less damaging ways. There are always products and methods hitting the marketplace which are specifically designed for the professional world to cohesively exist with a healthy planet. There is a need for proactive solution seeking, of course.
By choosing to investigate the potential damage of current business products and finding better alternatives the company can create a truly green workplace. In many cases companies choose not to do this because they believe it is a higher expense with no obvious reward for the company. This is where many mistakes are made.
There are plenty of ecologically balanced products and services that can in fact save corporate funds. Sometimes the savings are found in the actual purchase price. Sometimes they become obvious in the total cost of overall use or disposal. There are items that are certainly going to be more costly but that is no longer a rule to operate by.
If the moral payoff is not sufficient, there are others that can be enticing to all kinds of businesses. One of the most valuable financial payoffs includes the avoidance of fines. The standards and regulations do tend to change regularly, and it does not take much of a change to go from being in compliance with the regulations to be out of compliance.
Consumer attraction is the other payoff. With only a small amount of publicity or acknowledgment from environmental organizations an entire consumer demographic can be alerted. There are a growing number of consumers who only want to support those companies which offer complete and total ecological support.
Simple changes like adding digital printing that is eco friendly can make a big difference in the impact inflicted by any company has on the planet's state of health. These kinds of changes are simple to implement. They are also a cost effective way to proudly stand behind your business a supporter of protection for the environment.

Importance of Choosing Branded Lab Equipment

Branded Laboratory Equipment - Guarantees Exact and Reliable Results
Research and clinical laboratories need diverse types of equipment to perform different tests or analyses. Laboratory equipment has to be absolutely reliable if you are to get accurate results. Hence we have to consider various aspects before buying laboratory equipment and it is important to go in for branded lab equipment. When buying lab equipment, consider its technical features, usability, quality, durability and accuracy.
Why Customers Depend on Brand Lab Equipment
Many customers have faith in laboratory equipment provided by renowned brands such as Siemens, Beckman Coulter, Boekel Scientific, Alfa Wasserman, Bayer, Roche Hitachi, and LW Scientific. Reasons to rely on branded products are:
• Ensures high quality products with user friendly protocols
• Wide product range with varied specifications and features to meet present day clinical and research requirements
• Provides accurate diagnostic results
• Minimum time required to deliver the final results
• Easy availability of spare parts, consumables and other accessories
• Innovative devices enhanced with advanced technology to perform complex experiments quickly
• After sales service and annual maintenance contract are available
• Adequate warranty for the product
• Replacement options for various parts during the warranty period
• Guarantees durability and extended life span
• Lessens performance irregularities and variations in results
Moreover, branded chemical lab equipment sticks to safety standards ensuring the wellbeing of users. You can purchase branded systems such as centrifuges, microscopes, chemistry analyzers, hematology analyzers, incubators or spectrophotometers at discount prices from online stores.
How to Choose the Right Product
If you are thinking to renovate your old lab or start a new chemistry laboratory, make a list of the required gadgets. It is up to you to select new or refurbished branded lab equipment depending on your budget. Afterwards, consult expert lab equipment dealers or search the internet to find products that satisfy your requirements. Before buying lab equipment, it is necessary to evaluate specifications and other features in detail for selecting the best products with advanced features. Compare the qualities of branded products and then take a proper decision. However, recertified equipment that functions just as brand new products is a perfect alternative if you are on a tight budget.
Criteria to Choose the Right Dealer
As the market is flourishing with many laboratory equipment suppliers, you should be cautious in selecting the right dealer. Take into consideration certain facts such as:
• Experience in selling quality lab equipment at competitive prices
• Availability of adequate trained staff to provide efficient services on call
• Whether they ensure complete warranty and dedicated customer care
• Whether there is provision for parts replacement
• Whether the dealer provides safe and quick shipping of products
Many laboratory equipment suppliers provide online facilities to shop for various products economically. Your equipment is a long term investment. To benefit from efficiency, reliability and accuracy it is important to choose branded lab equipment.

Improving Property Values By Adding The Right Surfaces

Whether you want to increase the value of your personal property or you are looking to improve upon a business property, one of the aspects to consider is adding surfaces. There is a great deal of emphasis placed on landscaping and renovation because it is important. Surfaces can be just as vital and even inspire new ideas for creating entirely new surroundings.
The driveway and parking area is an obvious place to start. It is automatically unappealing to find that the entrance to any property is littered with potholes, cracks, or crazing. A clean and smooth surface offers a much more appealing look which immediately makes a statement of higher value.
There are different ways to have a poor entrance refinished. Some choose to simply lay a new surface on top of the old believing that it will cut costs. This practice will typically reduce the life expectancy of the new layer. Removing the existing layer and creating a fresh one is the recommended method for transforming the entrance to a property.
Additionally, you can have tremendous success increasing the appeal of any property by adding sport courts. A tennis court in your backyard can be a serious boost to the value of the home while also providing an excellent area for personal enjoyment. On professional properties, this can be a great way to offer employees more perks without spending a lot of money. Adding courts for tennis, basketball, or playgrounds are reasonable in cost.
A project such as this should be done by professionals. You want to avoid attempting this as a do it yourself project. There is a complex process that should be followed in order to the area to remain flat, meet standard codes, and last a lifetime. Professional installation is a much better option for this sort of improvement if you truly wish it to be a good value.
There is no need for excessive space to provide the right surface for increasing the value of your home or business property. Many places can be upgraded provided the right design matches the space available. Consulting with a professional can help you understand your options.
Professional installation is also recommended to help improve the immediate look and functionality. Things like temperature and humidity can have a profound effect on the outcome. In areas of excessive warmth like Phoenix resurfacing might be done at night. Knowledge and experience will mark the way for creating the space that gives you back greater value in the land you own.

Are Interest Rate Swaps Heading the Way of the Dodo?

Previously I wrote about the bad press interest rate swaps have been receiving and that I felt much of the criticism was unjustified. I firmly believe that a lot of the negativity has been due to people not understanding why swaps are useful and, because of this, they fear their use.
Further muddying the waters has been the recent announcement of new margin requirements for over-the-counter (OTC) swaps. The Commodity Futures Trading Commission (CFTC) has published several important rules for compliance, including a proposed start date of October 12. This has been coming for some time with the Dodd-Frank Act requiring most OTC derivatives to be traded on a Swap Execution Facility (SEF). (A SEF is "a trading system or platform in which multiple participants have the ability to execute or trade swaps".)
This has got everyone excited and even saw Risk Magazine undertake a poll to see what the impact of the proposed margin requirements on uncleared trades would have. The results, while on the face of it are not surprising, could well be mis-leading.
60% of respondents to the survey thought end-users will opt not to use derivatives as a result of initial and variation margins requiring to be posted on uncleared swap trades. When the sort of money being talked about in collateral is in the trillions it is not surprising that there is some concern over this, and questions over the use of swaps in the future.
However I think we need to "back the truck up" a bit here. These new regulations do not relate to non-financial entities. The new proposals state "the margin requirements need not apply to non-centrally-cleared derivatives to which non-financial entities that are not systematically-important are a party."
So corporations are exempt and therefore can continue to use swaps as they have done before - as a risk management tool to hedge future movements in interest rate risks. Interest rate swaps have got organisations into trouble in the past and no doubt will do so in the future, but almost without exception the reason that the deals have gone sour is because the people entering into them in the first case did not understand them. Sure the sales people have been gung-ho in some cases and they may or may not have been the best tool to use at the time, but again if the organisations entering into the swaps had a clear understanding of their use, most of these problems would be averted.
It is timely to remind ourselves of what needs to be in place to confidently enter into derivative deals. Firstly, make sure you have an exposure that the derivative will accurately hedge. If as a borrower you have floating rate debt then an interest rate swap whereby you swap your floating interest payments for fixed interest payments would be appropriate. If you have floating rate debt and you sell an option to receive a premium to offset your interest payments, then this is speculation and is not managing your interest rate risk as you still have unlimited risk on the top side.
Secondly, understand the product itself well enough so you know the risks you are taking on board. If you are unsure DO NOT ENTER THE TRANSACTION. Normally plain vanilla deals will suffice, if you move away from the plain vanilla again you need to understand intimately what you are getting into. If interest rates go up what is the impact on your portfolio? Likewise if interest rates go down, what does that mean to you?
Finally you need to be able to record, report and value these transactions so that at all times you have a good handle on your current position and what might happen in the future if interest rates change. If you can't capture your deals appropriately and value them then this is when unpleasant surprises can happen. You need to know your position at all times.
So changes are on their way, but as a business there is no cause for concern that instruments like swaps will no longer be able to be used as a risk management tool. If you follow the common sense rules then they are still an important way to manage your risks - despite what the regulators may seem to be saying.