Manage your financial risk

After moving significantly higher on the back of a hotter-than-expected inflation reading the week prior, Treasury yields remained very volatile throughout the week and ended the week moderately higher across the curve as investors grappled with the FOMC’s decision to raise the Target Range 75...

Global stock indices fell last week amid persisting inflation fears and subsequent expectations for more aggressive rate hikes. Domestically, fears that the Fed’s attempts to curb inflation will push the U.S. economy into a recession exacerbated investor concerns. Markets temporarily rebounded in...

Chatham Financial acted as the sole financial risk management and hedging advisor for sponsors redeveloping terminals 1, 2, and 3 of New York’s JFK Airport. On June 10, New Terminal One at JFK Airport, a consortium of labor, operating, and financial partners building this terminal, announced the financial close of the first phase of the project and will move forward with construction.

On 16 June, the Bank of England (BoE) voted six to three to raise the U.K. base rate by 0.25% to 1.25%, with all three dissenters voting in favour of a 0.50% hike. The hike represents the fifth straight hike by the BoE since they became the first major central bank to begin monetary tightening....

On Wednesday, June 15, the Federal Open Market Committee (FOMC) voted 10 to 1 to raise the federal funds target range by 75 basis points to 1.50%-1.75%. This is the biggest rate hike by the Federal Reserve since 1994. They are also currently projecting seven more interest rate hikes in 2022 for a...

“Springing” interest rate caps are a type of loan requirement that requires a borrower to purchase an interest rate cap post loan closing if (and only if) the floating reference rate (EURIBOR, SONIA) or a fixed reference rate (swap rate) crosses a certain threshold (often called the “trigger”)....

In our first and second note on liability management, we focused on borrowers who have issued bonds in the last two years and explored the advantages and disadvantages of buying back bond issues trading below par. Our third note of liability management will focus on derivatives. Against a...

Treasury yields across the curve moved notably higher last week, while the major U.S. equity indices continued to decline, as market participants digested the latest inflation data and placed bets for a more hawkish Federal Reserve.