Strategic Treasurer, in partnership with GTreasury, has released the 2023 Treasury Technology Analyst Report. The 2023 Treasury Technology Analyst Report serves as a definitive guide for thoughtful financial stewardship in the digital age, aiding practitioners in exploring how treasury technology meets treasury needs. The report delves into technology trends for this year and beyond, current market […]
GTreasury was recently named as a Leader in two new reports, the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Enterprise Treasury and Risk Management Applications 2023 Vendor Assessment, as well as the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Midmarket Treasury and Risk Management Applications 2023 Vendor Assessment. In these latest reports, GTreasury was recognized for its […]
How do you choose a TRMS that will deliver the tools and connections you need? Look before you leap: it’s a universally agreed upon adage in many circles, but it’s particularly relevant to the world of treasury and risk management. Treasurers need accurate and immediate information to effectively manage risk and seize strategic opportunities, whether […]
A popular Chinese proverb says “the best time to plant a tree was 20 years ago. The second-best time is now.” This is equally true in the world of hedging.
With the transition from LIBOR in full swing, the time to act is now. New transactions starting in January 2022 will not be based on LIBOR. Some financial institutions are using SOFR, but there are other reference rates being used, causing market confusion and changing risk profiles.
On Friday, the CME announced they will start publishing Term SOFR Rates for 1-month, 3-month and 6-month tenors.
Friday, March 5, 2021, the official groundwork was laid to discontinue LIBOR by the FCA, IBA and ISDA.
In unexpected news today, the end of USD LIBOR has been extended to June 30, 2023.
Late last week, the Financial Accounting Standards Board (FASB) issued an exposure draft expanding the scope of Topic 848 to include derivatives that are discounted, but not reset, using rates subject to reference rate reform (RRR). The proposed amendments target contracts with calculations (other than resets) referencing IBOR rates, e.g. margining, discounting or price alignment.
The eagerly anticipated ISDA IBOR Fallback Protocol was released on Friday, October 23, 2020. The effective date of the protocol has been set for January 25, 2021.
We always encourage hedgers to consider the economics of a transaction before looking at the accounting. If the economics don’t make sense, it doesn’t matter how favorable the accounting treatment is, it probably isn’t a good idea!
The direct impacts of the transition away from LIBOR to the use of an alternative reference rate such as the Secured Overnight Financing Rate (SOFR) have been well publicized. ISDA and ARRC have been releasing regular updates and suggested fallback language to determine how LIBOR rates will be replaced in derivative and loan agreements, once LIBOR is no longer available.
While the derivatives market had been changing fairly rapidly prior to COVID-19, 2020 market dynamics have not closed the gap between expected and observed market prices. It’s critical that corporations and institutions address the coming reference rate changes related to their derivatives and debt instruments tied to LIBOR.
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.
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.