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Amol Dhargalkar spoke with CFO Dive on hedging as inflation rises

November 26, 2021
CFO Dive


CFO Dive spoke with Amol Dhargalkar about how companies can still devise a hedging strategy to protect their businesses from price volatility as inflation rises.

Inflation has caught many companies off guard but it’s not too late to devise a hedging strategy or revisit the one you have to manage price volatility, Chatham Financial Managing Partner Amol Dhargalkar told CFO Dive.

CFO Dive

Dhargalkar details the kinds of risks that corporates need to hedge against, including manufacturing and cloud software. He also reminds readers that communicating your hedging strategy to investors is nearly as important as the strategy itself. “If your program is small and your company is big, you can do things without having to explain them too much to investors, because it takes a very tiny portion of your financial results and line items,” he said. But if the programs are material, “you don’t want investors to look at your derivatives and start worrying, is this company doing the right thing?”

Our expertise for corporates

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.