Manage your financial risk

An FX option is an insurance policy, usually bought by way of a cash premium. It is deployed as a hedging strategy when flexibility is required and/or when its holder has a particular view on future currency movements.

“Moving on” from LIBOR, an interest rate benchmark which underpins around $300T ($30T in GBP markets)1 of financial contracts across derivatives, bonds, and loans was never going to be easy. Last month we, in the U.K., started to experience what life after LIBOR will look like...

Debt valuation has long been a topic of debate among entities required to report fair value. Because of varied interpretations of accounting standards, methodologies for valuing debt have ranged from simply reporting the remaining principal balance to an application of complex algorithms. This...

Rather than simply accepting their fate and holding onto low-yielding floating-rate assets, financial institutions can use swaps to improve their net interest margin.

At the beginning of April, Chatham Financial named Matthew Tevis the Managing Partner and Global Head of Financial Institutions.

ISDA’s Benchmark Reform Working Group is in the process of updating the 2006 ISDA Definitions to include a modular approach towards term rate calculations. ISDA’s modifications to their Definitions would allow market participants to better align their derivatives with the conventions employed in their cash products.

Despite uncertainty caused by rising COVID cases and the possibility of new global variants, strong March nonfarm payroll numbers and continued vaccine progress have increased investor confidence, raising hopes there is light at the end of the tunnel.

The major U.S. equity indices continued to march higher last week while yields pulled back amid strong economic data releases, dovish comments from the FOMC, fiscal stimulus bill developments, and an improving COVID-19 situation in the U.S.