Accounting & DisclosureCapital MarketsFXRisk Management
May 7, 2020

Crisis Forces Consideration of Unwinding Cash-Flow Hedges

The COVID-19 crisis has reduced exposures to a point where for many companies those hedges may not be needed anymore. Time to unwind? If you’re planning on unwinding a cash-flow hedge, there are many things to think about before you do. Determining when and why to unwind, as well as how to view the transaction’s cost benefits, and what counterparty to use, are just a few of the factors to consider. This was the topic of discussion among NeuGroup FX Managers’…
Uncategorized
August 14, 2019

Balancing CFar and EaR in Order to Optimize FX Hedges

Bloomberg launches dynamic FX hedging model tested by Constellation. After a successful pilot with Constellation Brands, Bloomberg is offering a sophisticated approach to managing foreign-exchange (FX) risk. The new product measures the impact of currency fluctuations on cash flow and earnings and enables a more targeted FX hedging strategy. “This risk management strategy has dramatically changed the way we speak to executive leadership about risk,” said Sandy Dominach, senior vice president and treasurer at Constellation Brands. “We now have a…
BankingInvestment Management
January 22, 2019

Beware Zero-Based Floors

Chatham: Banks embedding zero-based floors in the fine-print on some floating debt. With rates going negative around the world, banks are embedding zero-based floors into the floating-rate loans they provide, and while on the surface that seems like a plus, they can end up carrying a big price. That was one of several insights on today’s uncertain financial markets that Kennett Square, PA-headquartered Chatham Financial provided in a recent market update titled. “Global uncertainty packs a local punch.” Zero-based floors…