April 02, 2020

Zero Percent Floors' Impact on Hedging: Negotiating Debt & Swaps

Posted by Ruth Hardie
With interest rates near all-time lows, many companies are starting to worry about the effectiveness of their current hedges when they aren’t perfectly matched to the underlying debt, while others are looking to lock in the favorable rates by...
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March 20, 2020

Need to Monetize FX Hedges to Boost Cash Flow?

Posted by Helen Kane
Under stable market conditions, most corporate foreign currency hedgers have a “set it and forget it” hedge strategy. Whether it’s cash flow or net investment hedging, once the hedges are in place, the majority of companies hold onto their...
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March 16, 2020

Fed Takes Fed Funds Rate to Zero: How Zero Percent Floors Impact Hedge Programs

Posted by Farah Lotia
On Sunday afternoon, the Federal Open Market Committee (FOMC) reduced its target rate by 100bps to a range of 0-0.25%. Zero percent interest rates are quickly becoming a reality in the United States. In fact, treasury inflation-protected...
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March 12, 2020

Identifying Hedgeable FX Exposures: Accounting & Economic Risks

Posted by Lorraine Popylisen
At Hedge Trackers, we are frequently asked to help identify “hedgeable” cash flow exposures under ASC 815 for our clients. Sometimes, there is an accounting exposure but no economic exposure and vice versa. The best hedges protect both the...
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March 10, 2020

Protecting Margins on Foreign Sales: Dollars vs. Percent

Posted by Glenn Suarez
Many companies protect margins from changes in foreign currency rates by using special Cash Flow hedge accounting strategies. But when subsidiaries transact in foreign currencies, the functional currency of that subsidiary impacts the ability to...
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March 06, 2020

How the Coronavirus Can Impact Your FX Cash Flow Hedge Program

Posted by Karen Gubler
Many companies will be affected by a global pandemic (should it come to fruition)—and a number are already being affected just by the containment efforts. We see three sources that will be affected:
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March 05, 2020

Best Practices for FX Hedge Performance Reporting

Posted by Lorraine Popylisen
You’ve spent hours and hours developing a hedging strategy, identifying exposures, forecasting, and verifying hedge accounting, but your efforts shouldn’t stop there. To inform management the job is done, and done well, you need to go to the next...
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March 04, 2020

The Fed's Emergency Rate Cut: What This Means for Interest Rate Hedges

Posted by Ruth Hardie
On March 3, 2020, the Federal Open Market Committee (FOMC) made an emergency 50bp interest rate cut in response to the Coronavirus’ impact on the U.S. economy. Both Cash Flow and Fair Value interest rate hedgers will be affected by the change.
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March 03, 2020

Are Your Treasury & Accounting Teams Disconnected?

Posted by Lisa Wallace
Treasurers are tasked with protecting the gain/loss line as well as foreign revenue, expenses and/or margins. So, it’s not unusual for Treasury departments to want to implement a foreign currency hedge program. A balance sheet hedge program is...
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