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...
September
01,
2020
Posted by
Jeff Goggins
Once a company establishes a balance sheet program, it likely runs on auto-pilot from then on. Exposures are gathered, forecasted, netted, hedged and adjusted inter-month, and the results of the program are reported — but rarely is there a ...
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
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
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...
March
20,
2020
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...
March
12,
2020
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...
March
10,
2020
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...
March
06,
2020
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: