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  • Volatility and Interest Rate Hedging

    Major world events – like the recent “Brexit” vote – often wreak havoc on interest rate markets. Some produce a swift drop in rates. Others precipitate a general rise. Many are mixed. The only consistent, predictable element is unpredictability. While there is no way to keep major, market-affecting events from occurring, it is possible to […]

  • Software Spotlight: How to Setup Dual Trade Approval

    Capella offers customization with regards to FX approvals. As a system control you can require that approval be given before certain actions, such as trade execution or strategy use. The system administrator has access to the Security module and can setup the desired FX approvals.

  • Two Big Wins for Simplicity in Hedge Accounting

    The FASB met last Wednesday and made several key decisions on the long awaited hedge accounting exposure draft. The goal of the draft remains the same: “The proposed amendments are intended to better reflect an entity’s hedging strategies on its financial statements and reduce complexity in the hedge accounting model by making targeted improvements.”

  • FX: A Hidden Reason for Missing the Mark in Cash Flow Forecasting

    Ever thought about how you should “convert” certain cash flows or, when you’re hedged, how that might impact the cash flow forecast? Cash flow forecasting is as much an art as it is a science, but there are some tangible hidden factors that you may not be contemplating in your current cash flow forecasting process. […]

  • What Might the Brexit Decision Mean for You?

    As you know, the United Kingdom voted to leave the European Union (EU). This surprising vote caused the British pound to fall against all major world currencies, stock markets and indexes across the world to drop, bond prices to increase and interest rates to fall. Although most currencies and indexes have retrenched from overnight peaks, uncertainty […]

  • Software Spotlight: How to Use the “As of Date” in the Exposure Window

    You may have wondered why the FX Exposures window displays a seemingly arbitrary date at the top right hand corner of the CapellaFX screen. As a matter of fact, the exposure “As of Date” automatically defaults to 45 days before the system’s current date in order to allow for a reasonable time period from which […]

  • Impact of Upcoming FASB Changes on Cash Flow Interest Rate Hedgers

    In Q3, the FASB is expected to issue an Exposure Draft containing sweeping changes to hedge accounting. Though the Draft’s exact wording has not been released, the preview includes exciting changes for the corporate hedging community. This post is Part 3 of a series highlighting expected changes by hedge type. Part 1 focuses on commodities; Part 2 focuses on […]

  • Impact of Upcoming FASB Changes on FX Hedgers

    Q3 is the new FASB deadline for issuance of an Exposure Draft revolutionizing hedge accounting. Though its exact wording has not been released, the conclusions released to date ensure it will have significant impacts on the corporate hedging community. The impacts will be different depending on the hedging strategies and instruments a corporation has in […]

  • Accounting Considerations When Hedging Yield on Future Bond Issuances

    Hedge accounting guidance under GAAP does not always mesh cleanly with market practices related to a derivative strategy and underlying hedged item.

  • Impact of Upcoming FASB Changes on Commodity Hedgers

    An upcoming Exposure Draft, which the FASB is expected to issue before the end of Q3, will contain sweeping changes for commodity hedgers. This is Part 1 in a series of posts highlighting the changes expected to be included in the exposure draft. Part 2 focuses on FX hedging; Part 3 focuses on cash flow interest rate hedging. […]

  • Software Spotlight: Capella FXall Trading Portal

    FXall is a widely used trading platform providing electronic trading in foreign exchange markets to corporate treasurers and other investors. Capella and FXall are integrated so a client can initiate a trade in Capella and execute it in FXall then retrieve the trade information back into Capella. This allows for a seamless flow between the trade database and […]

  • How to Win Board Approval for a Hedge Program

    As seen on Treasury & Risk

  • ‘Locking in’ USD: Hedging in Growth Mode

    Currency volatility is driving companies to implement hedge programs earlier and earlier in their growth cycles, with eyes on “locking in” current rates to protect their financials.

  • Getting You to the Top: Part VI. Hedge Accounting

    This is the last in a series of posts designed to give an overview of the steps required to establish and maintain a balance sheet hedge program. Once a balance sheet program is established, the next logical step is to focus on protecting company margins. Today, we’ll discuss special hedge accounting as a natural extension […]

  • FASB Publishes Article on Coming Exposure Draft

    A new article published by FASB, “What You Need to Know About Hedging,” examines some of the thought behind the highly anticipated Exposure Draft dealing with hedge accounting. According to FASB, the proposed guidance aims to simplify hedge accounting for the benefit of both financial statement preparers and users. The drafted proposal, the article reads, […]