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The GTreasury Blog

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  • SOFR: Key Characteristics & Hedge Accounting Impacts

    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.

  • For the Urgent Hedger: Cash Flow Hedging Made Easy With Hedge Trackers

    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 the right solution.

  • Hedge Effectiveness & Probability Assessments

    There has been some confusion around the ASC 815 rules set regarding effectiveness assessments and probability assessments.

  • 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.

  • Need to Monetize FX Hedges to Boost Cash Flow?

    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.

  • How the Coronavirus Can Impact Your FX Cash Flow Hedge Program

    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.