Amol Dhargalkar discusses how corporates can prepare for LIBOR transition with Axios
The companies that are being proactive are currently taking inventory of their total Libor exposure, moving agreements to new benchmarks where they can, and getting pricing indications to understand how to address their future needs, Dhargalkar says.
It’s a little like the tale of the boy who cried wolf. Regulators have been telling the market for more than a decade that the Libor rate benchmark’s end was nigh. But now that it’s really, seriously, going to end as of December, loads of big companies are unprepared.
Why it matters: Companies that don’t adequately prep for the death may wind up paying the price in time and money, Amol Dhargalkar, global head of corporates at financial risk adviser Chatham Financial, tells Axios.
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Chatham provides the knowledge and expertise needed to manage the financial risk associated with interest rate, commodity, and foreign exchange volatility. We develop and implement hedging strategies for hundreds of public companies annually, based on deep and productive banking relationships, giving us market data and insights to enable you to secure the best pricing and terms. Our goal is to empower you to strengthen your financial position and support your company’s financial objectives.
With expertise across hedge accounting, regulatory compliance, valuations, and hedging transactions, we can support all aspects of financial risk management. Our ChathamDirect platform provides convenient workflow, robust analytics, and comprehensive accounting methodologies, supported by our unmatched commitment to client service. This unique combination of strategy, operations, and technology will empower you to run a best-in-class hedging program.
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