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  • How Zero Percent Floors Impact Hedge Programs

    On Sunday afternoon, the Federal Open Market Committee (FOMC) reduced its target rate by 100bps to a range of 0-0.25%.

  • How the Coronavirus May 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.

  • The Fed’s Emergency Rate Cut: Impacts on Interest Rate Hedges

    On March 3, 2020, the Federal Open Market Committee (FOMC) made an emergency 50bp interest rate cut in response to the Coronavirus’ impact on the U.S. economy.

  • A Voice for Corporates: The AFP LIBOR Task Force

    David Bowman with the Federal Reserve Board has asked the Association for Finance Professionals (AFP) to be the voice of Corporate Treasury in terms of addressing LIBOR for the Alternative Reference Rates Committee (ARRC) as part of the Coordination Subgroup.

  • Interest Rate Reform and Implications on Foreign Currency Derivatives

    What’s the Issue? Britain is ending support of the London Interbank Offered Rate (LIBOR) on or about 2021. US regulators currently plan to replace LIBOR with the Secured Overnight Financing Rate (SOFR) curve. The pending “Illiquid LIBOR Market” and related lack of transparency will render valuations of LIBOR priced instruments troublesome.

  • November 2019 Update: Your LIBOR Questions Answered

    LIBOR has been referred to as the plumbing buried in many financial contracts, and the end of LIBOR will cause a seismic shift in the financial markets.

  • Hedge Trackers Prepares Clients for Interest Rate Reform & SOFR Transition

    If you use Hedge Trackers’ Outsourcing and/or Software suite (Capella) services, you might be wondering what’s going to happen when interest rate reform occurs and SOFR replaces LIBOR in early 2021.

  • FASB Proposed Guidance for LIBOR to SOFR Transition

    As a follow up to FASB’s June initiative to provide accounting relief to organizations that will need to modify their contracts as LIBOR is replaced by SOFR, FASB released a proposed Accounting Standards Update on Thursday.

  • LIBOR Transition: Regulatory Guidance for Hedge Accountants

    As the London Inter-bank Offered Rate (LIBOR) begins to phase out, many corporate treasurers have been flooded by a wave of uncertainty. Our advice has been to proactively start planning alternatives by looking out for the guidance and term structures released by accounting regulatory bodies.

  • Goodbye, LIBOR: Finding the New Normal

    At this point, LIBOR’s phasing out by Britain’s Financial Conduct Authority (FCA) may be old news. Although the topic has been a constant presence in headlines, there’s still lingering questions about what this means and what organizations should do in its wake.

  • Banking in the UK: Navigating the Mass Exodus

    The uncertainty of Brexit accompanied by the phasing out of LIBOR has turned the financial services industry in Europe on its head. As organizations take precautions amidst the uncertainty, it has become evident that the number one financial hub in the world has begun to fall from its pedestal. Until concrete decisions are finalized, the […]

  • Hedge Trackers Comments on the End of LIBOR

    Bloomberg Tax – “LIBOR’S Looming End Leaves Hedgers, Lenders in a Bind” Nicola M. White, Reporter “This is really so pervasive, it’s going to affect literally every company out there,’ said Ernie de Lachica, senior director at BDO USA LLP. Any business that has a loan likely has an interest rate tied to LIBOR, and banks making […]

  • Farah Lotia’s Insights on Global Risks in 2019

    Visual Capitalist “The Top Global Risks in 2019” “91% of respondents to the Global Risks Perception Survey indicated that economic confrontation/frictions between major powers were an expected risk increase in 2019.”

  • Hedge Trackers’ Commentary on the Demise of LIBOR

    Global Finance “Fear and Loathing On The Road to Libor’s Demise”

  • Hedge Trackers Comments on Treasury & Risk Article Regarding 2019 Currencies

    Treasury & Risk “Currencies in 2019: Expect the Unexpected” “In order to be strategic, corporate treasury teams need to understand not only how currencies are impacting their financial statements, but also how they can offset exposures and mitigate potential impacts. Technology tools that include business intelligence, AI and interactive reporting can deliver insights on both […]