Understanding FASB’s Latest Reference Rate Reform Guidance
In March, the FASB issued ASU 2020-04 on the “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.”
The GTreasury Blog
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Understanding Hedge Effectiveness & Probability Assessments
There has been some confusion around the ASC 815 rules set regarding effectiveness assessments and probability assessments.
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Quarter-End Interest Rate Update: What to Expect
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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Zero Percent Floors’ Impact on Hedging: Negotiating Debt & Swaps
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 entering into hedges or extending the length and/or amount of hedge coverage for existing hedges.
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Monetizing FX Hedges to Boost Cash Flow: Essential Strategies
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 derivatives through maturity. It’s an understandable practice as the best hedgers usually deliver currency against their hedges. This preserves the hedge rate in margin and converts cash at the same hedge rate.