Hedging Instruments

[Mojo]

In Ch19 of the Investment Management for Insurer book, the author stated that one of the advantages of hedging interest rate risk with futures and interest rate swaps is that those derivatives can be kept off the balance sheet. With the advent of FAS133, can we assume author's claim no longer valid? I would think so.
What do you think?

[Allacalander]

Given the way exams go, you had better plan on explaining it both ways.