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Japanese to English: 金融商品の内容及びそのリスク General field: Bus/Financial Detailed field: Finance (general)
Source text - Japanese 当社グループが保有する金融資産は主に債券、株式等の有価証券であり、これらは、市場リスク及び信用リスクを内包している他、巨大災害の発生、保険契約の解約急増などによる資金繰りの悪化や市場の混乱等によって不利な条件での資産売却や資金調達を余儀なくされる流動性リスクも内包しています。
取引先企業等に対して行っている長期貸付については、契約不履行によってもたらされる信用リスクを内包しています。
デリバティブ取引は、通貨関連では為替予約取引、通貨オプション取引、通貨スワップ取引、金利関連では金利スワップ取引、債券関連では債券先物取引、債券オプション取引、株式関連では株価指数先物取引、個別株オプション取引、信用関連ではクレジットデリバティブ取引、その他では天候デリバティブ取引、地震デリバティブ取引を利用しており、これらも主に市場リスク及び信用リスクを内包しています。
なお、市場リスクとは、取引対象物の価格変動に係るリスクであり、為替相場、市場金利、株価などの変動によって損失を被る可能性ですが、当社グループは主として保有資産のリスクをヘッジする目的でデリバティブを利用することにより、当該市場リスクを効果的に軽減しています。
また、信用リスクとは、取引相手先や取引対象物の信用度の変化や倒産等によって損失を被る可能性ですが、高格付けの発行体・取引先を選別することで、信用リスクの回避を図っています。
当社グループはデリバティブ取引を利用してヘッジ会計を行っています。
金利変動に伴う貸付金及び債券のキャッシュ・フロー変動リスク並びに「保険業における金融商品会計基準適用に関する会計上及び監査上の取扱い」(日本公認会計士協会業種別監査委員会報告第26号)に基づく長期の保険契約等に係る金利変動リスクをヘッジする目的で実施する金利スワップ取引については原則として繰延ヘッジ処理により、特例処理の要件を満たしている場合は特例処理によっています。
Translation - English Contents and risks of financial instruments
The financial assets that our Company Group hold are mainly marketable securities such as bonds and company stocks.
These contain market and credit risk. They also contain liquidity risk due to the possibility of the Company Group being forced to dispose of assets or supply funds because of unfavorable conditions . This may be caused by factors such as market turmoil or cash flow problems as a result of catastrophic disasters, or a significant increase in the cancellation of insurance policies.
We incorporate credit risk, due to breach of contract, into long-term loans that are made to business partners.
The Company Group engages in derivatives trading that includes currency transactions (such as forward exchange contracts, currency-options, currency-swaps), interest transactions (such as interest-swaps), bond transactions (such as bond-futuresand bond-options), stock transactions (such as stock-price index-futures trading and individual stock options) and credit transactions (such as credit derivatives). The Company Group also engages in weather derivatives and earthquake derivatives trading. The majority of these incorporate market and credit risk.
Market risk is the possibility of losses, due to risk related to, fluctuations in the price of investments , exchange rates, market interest rates and stock prices etc.
Our company group effectively reduces market risk by using derivatives to hedge the risk of assets held.
Likewise, credit risk is the possibility of losses due to a loss in credit worthiness or bankruptcy, of our transaction partner or investment. We aim to avoid credit risk by screening our transaction partners, dealing exclusively with those who have a high rating.
The Company Group utilizes derivative transactions in order to carry out hedge accounting.
To hedge the cash-flow fluctuation risk of bonds and loans vulnerable to interest rate fluctuation,
and the interest rate fluctuation risk related to long-term insurance contracts, which are based on "The Management of the Application of Financial Accounting Standards for Insurance Industries" (The Japanese Institute of Certified Public Accountants Industry Audit Committee report No. 26 ), deferred hedging is generally applied via the use of interest rate swaps. In special cases, when certain requirements are met, special treatment is afforded.
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Translation education
Bachelor's degree - Brighton University
Experience
Years of experience: 10. Registered at ProZ.com: Jul 2012.
I am a reliable, experienced, dedicated J>E translator with a background in English teaching, writing (fiction and magazine articles) and a degree in International Finance and Capital Market Studies. Living in Japan for over 8 years has enabled me to learn Japanese and given me a good understanding of Japanese culture. My excellent command of written English is due to my love of reading and literature. As a freelance translator with over 3 years of experience, a keen Japanese language student and a gifted prose writer, I am well placed to turn out good copy, especially in the fields of finance, business, economics, tourism and traveling, the arts and education.