April 26, 2021

US Markets Building Liquidity in the SOFR Market

Posted by Hedge Trackers
On Friday, the CME announced they will start publishing Term SOFR Rates for 1-month, 3-month and 6-month tenors. This establishes a SOFR reference rate that will be used to set interest rates in advance that pay in arrears, similar to current...
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March 08, 2021

FCA, IBA & ISDA Announcement About LIBOR Discontinuance: March 5, 2021

Posted by Hedge Trackers
Friday, March 5, 2021, the official groundwork was laid to discontinue LIBOR by the FCA, IBA and ISDA. Note: There is no immediate impact to your LIBOR based investments, debt or swaps. However, this is formal notice by key stakeholders that...
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February 16, 2021

5 Common FX Risk Management Mistakes

Posted by Karen Gubler
As companies implement and run foreign currency (FX) risk management programs, they need to be aware of some common mistakes. Not all treasuries will encounter every mistake, but they are sure to encounter at least one of these—if not now, then...
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November 30, 2020

LIBOR: Unexpected News

Posted by Ruth Hardie
In unexpected news today, the end of USD LIBOR has been extended to June 30, 2023. The Federal Reserve Board put out a press release today supporting the extension of LIBOR through June 30, 2023.
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November 05, 2020

FASB Proposes ASU Expanding Topic 848 (Reference Rate Reform)

Posted by Ruth Hardie
FASB Proposes an Accounting Standards Update Expanding Topic 848 (Reference Rate Reform)Respondent comments are due Friday, November 13. 
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October 26, 2020

ISDA Fallback Protocol for Your Derivatives: Released on Friday

Posted by Ruth Hardie
The eagerly anticipated ISDA IBOR Fallback Protocol was released on Friday, October 23, 2020. The effective date of the protocol has been set for January 25, 2021. The following is a brief list of questions you may have. Look for more detailed...
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October 21, 2020

Hedging for Financial Institutions – 2020 Update

Posted by Ruth Hardie
The drop in rates in Q1 has increased the net cash payments on pay-fixed, receive-variable interest rate swaps and at the same time increased the derivative losses. What does this mean for your hedge accounting? The good news is that the drop in...
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October 16, 2020

Reference Rate Reform: Economics & Accounting Treatment Impacts

Posted by Ruth Hardie
We always encourage hedgers to consider the economics of a transaction before looking at the accounting. If the economics don’t make sense, it doesn’t matter how favorable the accounting treatment is, it probably isn’t a good idea!
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October 12, 2020

LIBOR Transition: Indirect Valuation Impacts

Posted by Glenn Suarez
The direct impacts of the transition away from LIBOR to the use of an alternative reference rate such as the Secured Overnight Financing Rate (SOFR) have been well publicized. ISDA and ARRC have been releasing regular updates and suggested...
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