In a fair value hedge, the concern is always that a loss will be incurred (1) on an existing asset or existing liability or (2) a forecasted transaction.

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In a fair value hedge, the concern is about the potential changes in the fair value of an existing asset or liability, not necessarily about a loss, and it does not typically involve forecasted transactions (those are more relevant to cash flow hedges).

In a Fair Value Hedge, the Concern Is Always That