In this interview with gtnews, Helen Kane, founder and president of Hedge Trackers LLC offers her views on the extent to which companies can mitigate the impact of various risks through contingency planning. First introduced to currency risk management while working for a Silicon Valley-based manufacturing company as international treasury manager, Helen Kane founded Hedge […]
There is great news coming out of last week’s EITF meeting: Changing counterparties would NOT necessarily stop hedge accounting. In practice, when derivatives are novated from one counterparty to another, it has been considered a change in critical terms – which requires a dedesignation. Many users do a simultaneous dedesignation/redesignation; however, those using shortcut hedge […]
There is great news coming out of last week’s EITF meeting: Changing counterparties would NOT necessarily stop hedge accounting.
Interest rate swaps start and end at zero value. The changes that happen in between can create a wild and bumpy ride. Swaps change for two reasons: Time – making/receiving payments – and interest rates. With an upward sloping yield curve with an expectation of rising rates in the future, a pay fixed-receive variable swap […]
The European Union’s initiation of quantitative easing (QE) raises concerns about the state of Europe’s economies, and Japan has just released lower than expected GDP growth associated with its “Abenomics” program. These macroeconomic indicators should signal a review of your existing hedge notionals. A typical corporate hedge strategy is to layer on hedges over time. […]
Currency and risk management has long been a “black box” for the C-suite. It’s time for treasurers to try to change that. That’s no easy task, of course. But bringing to the table a thorough understanding of how currencies have and will impact financial statements goes a long way toward accomplishing that goal.