Quarter-End Interest Rate Update: What You Can Expect with the Current Market
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.
The GTreasury Blog
-
-
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.
-
Fed Takes Fed Funds Rate to Zero: 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%.
-
Identifying Hedgeable FX Exposures: Accounting & Economic Risks
At Hedge Trackers, we are frequently asked to help identify “hedgeable” cash flow exposures under ASC 815 for our clients.
-
Protecting Margins on Foreign Sales: Dollars vs. Percent
Many companies protect margins from changes in foreign currency rates by using special Cash Flow hedge accounting strategies.
-
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.
-
Best Practices for FX Hedge Performance Reporting
You’ve spent hours and hours developing a hedging strategy, identifying exposures, forecasting, and verifying hedge accounting, but your efforts shouldn’t stop there. To inform management the job is done, and done well, you need to go to the next level: performance reporting.
-
The Fed’s Emergency Rate Cut: What This Means for 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.
-
Are Your Treasury & Accounting Teams Disconnected?
Treasurers are tasked with protecting the gain/loss line as well as foreign revenue, expenses and/or margins. So, it’s not unusual for Treasury departments to want to implement a foreign currency hedge program.
-
Constant Currency Reporting: Year-Over-Year Challenges
Many public corporations report earnings, revenues and expenses on a “constant currency” basis. The objective is to present financials year-over-year (YoY) for comparative purposes without the effects of currency movements.
-
3 Hurdles to Overcome When Starting a Cash Flow Hedge Program
The thought of applying hedge accounting can be daunting for those unfamiliar with the requirements for qualifying for special hedge accounting treatment under ASC 815. In this post, we will discuss the basic requirements for qualifying and applying special hedge accounting.
-
Automating Special Hedge Accounting Compliance
Special hedge accounting is an elective accounting treatment under U.S. and International accounting principles. An organization must first qualify for special hedge accounting and then follow ongoing compliance requirements to remain qualified.
-
LIBOR Transition: New York Fed to Publish SOFR Averages & Index
LIBOR is being phased out through 2021, and the Secured Overnight Financing Rate (SOFR) was selected as the preferred LIBOR replacement by the Alternative Reference Rates Committee (ARRC) in June 2017.
-
LIBOR Transition: The Latest Interest Rate Reform Details
As LIBOR is phased out, reference rate reform will identify new and alternative reference index rates for financial instruments, including the Secured Overnight Financing Rate (SOFR).