June 13, 2017

Hedge Trackers’ Solution to Manage Currency and Accounting Risk

Posted by Jim Shepard
The client stopped missing forecasts due to currency movements when Hedge Trackers showed senior management that hedging could mitigate currency risk without increasing accounting risk. The Background: Currency movements were wreaking havoc on...
Read More
March 07, 2017

Hedging Balance Sheet Risk: Going From Good to Great

Posted by Jim Shepard
In some respects, Treasury has a dual burden where Balance Sheet hedging is concerned. Not only does the typical Treasury professional need to understand currency markets and derivatives, but he or she is often responsible for explaining the results...
Read More
December 07, 2016

Parking Cash Abroad is Risky. Here’s What Treasurers Can Do.

Posted by Helen Kane
As originally written by Helen Kane for AFP. It is quite common for U.S. corporations with foreign functional entities to leave cash overseas until an American tax holiday makes it advantageous to convert it to U.S. dollars.
Read More
October 13, 2016

Apples and Oranges: the Time Value Component of Options vs. Forwards

Posted by Glenn Suarez
Currency hedgers have the choice of including or excluding time value in effectiveness testing when applying cash flow hedge accounting to derivatives hedging forecasted FX-denominated transactions.
Read More
September 13, 2016

FX Hedgers: What You Need to Know About the New Hedge Accounting Exposure Draft

Posted by Helen Kane
Hedge accounting is changing – for the better! There are a few items in FASB’s Sept. 8 Exposure Draft that should be noted, as these will affect all foreign currency hedgers taking special hedge accounting:
Read More
September 13, 2016

The Forest & The Trees: Keeping Your Cash Flow Hedge Program in Perspective

Posted by Sandra Koch
Every cash flow hedge program begins with the best intentions: Reducing the impact FX, interest rate or commodity volatility has on anticipated revenues and expenses.
Read More
August 12, 2016

Making Hedge Program Analytics Actionable

Posted by Sandra Koch
On a purely theoretical level, the goal of a balance sheet hedge program is to simply cancel out the effects of FX volatility on the books. If an exposure produces a loss, the theory goes, a derivative should produce an equivalent gain – offsetting...
Read More
July 13, 2016

FX: A Hidden Reason for Missing the Mark in Cash Flow Forecasting

Posted by Jim Shepard
Ever thought about how you should “convert” certain cash flows or, when you’re hedged, how that might impact the cash flow forecast? Cash flow forecasting is as much an art as it is a science, but there are some tangible hidden factors that you may...
Read More
June 02, 2016

Impact of Upcoming FASB Changes on FX Hedgers

Posted by Ruth Hardie
Q3 is the new FASB deadline for issuance of an Exposure Draft revolutionizing hedge accounting. Though its exact wording has not been released, the conclusions released to date ensure it will have significant impacts on the corporate hedging...
Read More
2 3 4 5 6