GTreasury Logo
Typing on computer

The GTreasury Blog

All Categories

  • 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 Impending 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.

  • September 2019 Update: Fed Moves But Market Doesn’t Blink (Yet)

    Rates & Recession: What Happened? Last Wednesday, The Fed lowered its target for the federal funds rate by a quarter percentage point, to a range of 1.75% to 2%.

  • Optimize Your Digital Treasury

    Digital Treasury is the latest trend that’s slated to transform corporate treasury departments — and organizations as a whole.

  • 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.

  • What is Digital Treasury?

    Technology adoption in treasury is moving at a lightning pace. Treasurers view legacy processes such as printing checks, aggregating prior day cash balances and gathering manual foreign currency exposures as (soon to be) things of the past. Much like technology has become an integral part of our personal lives, the landscape for Treasurers is evolving […]

  • Forecasting Balance Sheet Exposures

    In order to mitigate foreign currency gains and losses, companies routinely hedge away currency risk associated with balance sheet exposures. Companies need to identify all monetary accounts on the balance sheet and aggregate the foreign amounts in those accounts.

  • Gathering Balance Sheet Exposures

    Balance Sheet Exposures  Balance sheet exposures are the drivers of the FX Gains and Losses that impact earnings every month. They are monetary accounts like cash, accounts receivable, accounts payable, inter-company balances and more that are denominated in foreign currencies, so their values fluctuate and they are reported as gains/losses on a company’s financials. The […]

  • Understanding Balance Sheet Exposures

    A majority of corporations identify and hedge balance sheet exposures. In fact, they are the most commonly hedged exposures by far. In order to do so, one must understand why balance sheet exposures pose a risk in the first place and how to identify which types of balances qualify as “balance sheet” exposures. Definition A […]

  • Types of Currency Exposures and Common Hedge Types for Each

    Currency movements affect internationally operating companies in many different ways. For example, when a U.S.-based firm sells goods and services in a foreign currency, their USD cash results fluctuate in relation to that foreign currency. When they consolidate foreign subsidiaries’ financials for reporting purposes, currency changes again impact their USD results. And when forward looking […]

  • LIBOR Transition: How Regulatory Bodies Are Guiding 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.

  • Commodity Hedging Basics

    This course covers the basic principles of hedge accounting for commodity price risk under ASC 815. [button2 link=”https://httrainings.webex.com/httrainings/onstage/g.php?MTID=e06d085e9ab18c956d4bbfff39bb465de” target=”_blank”]Register to Attend[/button2]   [line2] [accordion_title] Click Here for Event Details [/accordion_title] [accordion_content] Course Description: Participants will be prepared to: Focus on the general requirements required to achieve hedge accounting under ASC 815 Learn the benefits of hedge […]

  • Restoring Economic Integrity When Hedging Non-Economic Accounting Risk

    Motivational speaker Brian Tracy said: “Incorrect assumptions lie at the root of every failure. Have the courage to test your assumption”. Testing your assumptions is exactly what we plan to do.  

  • 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.