Businesses mired down by the impacts of COVID-19 are facing enough difficulties. But the march to LIBOR’s end has continued unabated. Governing bodies across the globe have made it clear that LIBOR will not extend beyond 2021. To date, we have...
August
27,
2020
Posted by
Ruth Hardie & Farah Lotia
As many of our readers already know, SOFR (Secured Overnight Financing Rate) has been selected by the Alternative Reference Rates Committee of the Federal Reserve to replace LIBOR in 2021. LIBOR represents the rate member banks borrow from each...
July
02,
2020
Posted by
Glenn Suarez
To implement a successful hedge program, it’s important that all parties involved know exactly what the hedge program will provide. This prevents disappointment and level sets expectations with management. Here are some common benefits FX hedge...
June
30,
2020
Posted by
Ruth Hardie
Lenders such as banks, mortgage lenders, and credit unions manage large portfolios of fixed-rate loans. Typically, these assets are funded with floating-rate liabilities. This mismatch between fixed-rate assets and floating-rate liabilities can...
June
25,
2020
Posted by
Jeff Goggins
The translation process converts local currency financial statements of subsidiaries into USD based financials for consolidation and reporting purposes. This is a relatively simple accounting process that’s typically performed by software in...
June
23,
2020
Posted by
Glenn Suarez
Using a Net Investment hedge strategy to boost income has been around for decades, but the ultra-low interest rate environment in Europe combined with the new rules under ASU 2017-12 has renewed curiosity in this approach. By utilizing a...
June
18,
2020
Posted by
Lorraine Popylisen
Do you need to implement a cash flow hedge program quickly — either due to urgent management directives, Board member mandates, or competitive pressures? It happens all the time, leaving treasurers and decision-makers to scramble to come up with...
June
17,
2020
Posted by
Lorraine Popylisen
A common misconception is that if you have a foreign currency transaction, you can simply hedge it and apply special hedge accounting. However, the fact is that sometimes an exposure can be hedged, but it will not qualify for special hedge...
June
10,
2020
Posted by
Ruth Hardie
Companies that need to refinance their debt do not have to wait until they refinance to lock in their interest rate on new issuances. Treasury organizations may choose to lock in current interest rate curves for the future refinancing date for a...