June 23, 2020

Leveraging Cross Currency Net Investment Hedges to Boost Earnings Through Interest Income

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...
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June 18, 2020

For the Urgent Hedger: Cash Flow Hedging Made Easy With Hedge Trackers

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...
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June 17, 2020

Special Hedge Accounting: Why Functional Currency Matters

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...
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June 10, 2020

Interest Rate Risk: Hedging Future Issuance of Fixed Rate Debt

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...
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May 04, 2020

LIBOR Transition: Understanding FASB's Latest Reference Rate Reform Guidance

Posted by Ruth Hardie
In March, the FASB issued ASU 2020-04 on the “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance provides optional practical expedients and exceptions to GAAP for contracts, hedge relationships and other...
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April 10, 2020

Hedge Effectiveness & Probability Assessments

Posted by Glenn Suarez
There has been some confusion around the ASC 815 rules set regarding effectiveness assessments and probability assessments. Both are required under the accounting guidance, but they evaluate the hedge relationship from two different perspectives....
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April 07, 2020

Quarter-End Interest Rate Update: What You Can Expect with the Current Market [VIDEO]

Posted by Hedge Trackers
In this video, Ruth Hardie, senior director of client services, provides an overview of what you can expect from interest rate swaps given the current large drop in rates.
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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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