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Jackie Bowie and Amol Dhargalkar discuss the role of alternative capital sources in TMI treasurycast

October 24, 2023


TMI treasurycast sits down with Jackie Bowie and Amol Dhargalkar to discuss the role of alternative capital sources and the opportunities and challenges borrowers may face over traditional means. They outline how to determine if alternative funding sources are appropriate depending on the business.

While disruptions in the capital markets can happen at any time, there has been been a lot of disruption recently with inflation, rapidly rising interest rates, and growth in alternative assets. As funding markets are not expected to improve in the short-term, investors — now more than ever — are having to make tougher refinancing choices in a higher-rate environment.

"Taking the alternative sources of capital doesn't change your risk exposures. You still need to be accessing the ability to hedge interest rates and FX, and it can completely change the providers you go for and the strategies you deploy to hedge that risk."

Jackie Bowie in TMI treasurycast

The banking crisis that took place earlier this year has brought to light that companies are directly exposed to their counterparties. If the counterparties are not available to provide the liquidity that they think they have, borrowers are changing their strategy and starting to turn to different sources of funding.

"It's only a matter of time before investment grade issuers, treasurers, and CFOs are taking a step back and saying, 'I could do this plain vanilla bond, but I really don't want to. We want to do something with more flexibility associated with it. Are there products like that out there?'"

Amol Dhargalkhar in TMI treasurycast

Our interest rate risk expertise

Chatham provides the knowledge and expertise to help you manage the financial risk associated with interest rate volatility. We execute thousands of transactions annually, based on deep and productive banking relationships, giving us market data and insights to help you secure the best pricing and terms. Our goal is to empower you to strengthen your balance sheet and support your company’s financial objectives.

Our highly experienced professionals, backed by the industry’s most advanced analytics and technology, partner with you to develop a complete hedging strategy, advising on such issues as which instruments to use and current market developments to consider. We help you achieve optimal execution, including handling negotiations and auctions. And because we seamlessly integrate with your hedge accounting and treasury management processes, you can be completely confident that every aspect of your strategy is fully covered.

With the highest volume and widest breadth of engagements in the industry, we empower you to negotiate with banks from a position of knowledge, gaining critical insight into market pricing dynamics while maintaining the integrity of your all-important banking relationships.