June 30, 2020

Last-of-Layer Hedging for Financial Institutions

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...
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June 25, 2020

6 Translation Accounting Nuances You Should Know

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...
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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 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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March 16, 2020

Fed Takes Fed Funds Rate to Zero: How Zero Percent Floors Impact Hedge Programs

Posted by Farah Lotia
On Sunday afternoon, the Federal Open Market Committee (FOMC) reduced its target rate by 100bps to a range of 0-0.25%. Zero percent interest rates are quickly becoming a reality in the United States. In fact, treasury inflation-protected...
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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.
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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...
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September 24, 2019

September 2019 Update: Fed Moves But Market Doesn’t Blink (Yet)

Posted by Farah Lotia
Rates & Recession: What Happened? Last Wednesday, The Fed lowered its target for the federal funds rate by a quarter percentage point, to a range of 1.75% to 2%.
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August 05, 2019

LIBOR Transition: How Regulatory Bodies Are Guiding Hedge Accountants

Posted by Ruth Hardie
As the London Inter-bank Offered Rate (LIBOR) begins to phase out, many corporate treasurers have been flooded by a wave of uncertainty. Our advice has been to proactively start planning alternatives by looking out for the guidance and term...
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