August 31, 2020

What to Watch for as LIBOR Fades Into History

Posted by Ruth Hardie
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...
Read More
August 27, 2020

SOFR: Key Characteristics & Hedge Accounting Impacts

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...
Read More
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...
Read More
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....
Read More
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...
Read More
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...
Read More
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:
Read More
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.
Read More
February 18, 2020

LIBOR Transition: New York Fed to Publish SOFR Averages & Index

Posted by Ruth Hardie
LIBOR is being phased out through 2021, and the Secured Overnight Financing Rate (SOFR) was selected as the preferred LIBOR replacement by the Alternative Reference Rates Committee (ARRC) in June 2017. The Federal Reserve Bank of New York is...
Read More
1 2 3