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ChathamDirect February product update

Date:
February 11, 2021

Summary

To deliver on the advantages clients gain from our seamless integration of advisory, operations, and technology, the ChathamDirect team continually enhances our platform, streamlining the way users manage their exposures, hedging policies, execution, valuations, and hedge accounting.

Cash flow updates

ChathamDirect has added new functionality to it’s cash flow exposure management module to support unique and nuanced hedging policies. Users can now create new (and multiple) detailed hedging policies based on specific currencies, forecast length, and hedge percentages by period. This allows you to set custom hedge targets by currency to reflect confidence in the forecasted exposures and to align with more granular policies. Additionally, you can now customize the timeframe during which ChathamDirect provides offsetting hedge suggestions to anywhere between 0 and 30 days.

Enhanced Management Reporting (BI)

We continue to enhance our business intelligence offering within ChathamDirect. This includes a complete picture of your FX portfolio, allowing you to see your portfolio overlaid with FX spot and forward curves, as well as the market volatility and correlation between indexes. Other updates include the ability to see your cash flow and balance sheet exposures over time so that you can understand why forecasts are moving and analyze exposure forecasts versus actuals.


FX Cash Flow Forecast Accuracy

Clients can sign up now to access enhanced management reports within ChathamDirect and gain access to dynamic reporting of your program. Reach out to your Relationship Manager or ChathamDirect Support representative.

Related insights: Read “Enhanced management reporting dashboards: three key benefits for financial risk management” and “Enhanced management reporting for hedge accounting.”

SOFR Readiness: Robust Forward Curve, SOFR discounting, and so much more

ChathamDirect is the leading SaaS derivatives platform for comprehensive SOFR readiness including a robust SOFR forward curve, SOFR discounting for LIBOR trades, and support for the observation periods. ChathamDirect incorporates guidance on valuation methodology and industry practice to determine the current appropriate methodologies and builds in flexibility to enable change as the markets evolve. With ChathamDirect, you can value SOFR swaps and options, load the trades, and automate the hedge accounting. The most robust available, Chatham’s SOFR curve is continually monitored and based on the most accurate and rigorous model approaches and structures in the market today and going forward. This flexibly designed foundation responds nimbly to market changes and offers observation-shift functionality, enabling users to look back in advance of scheduled payments, so you can reliably calculate payment amounts in advance of the payment dates. ChathamDirect is regularly used to confirm hedge payment amounts prior to exchanging funds with counterparties. We are the independent, relied upon system for SOFR, Ameribor, SONIA and all your derivative needs.

(Related insight: Read "LIBOR transition readiness checklist for corporates")

Looking ahead

We continually engage with you to learn your strategic objectives and day-to-day processes so we can focus our development efforts on the highest potential impact. That means you will continue to see enhanced functionality, tighter integration, and improved performance across our platform. Currently, we are developing new interest rate swap-loading functionality, which will enable you to load your own interest rate swaps directly within ChathamDirect and apply inception accounting during the trade-creation process. We are also improving the user experience for back-to-back trades and enhancing trade-matching functionality.

Transform treasury with automation and insight

Whether fueled by the need for actionable data, the mandate to leverage a lean workforce, or the realities of a sudden work-from-home environment, the steady movement toward treasury automation accelerated significantly in 2020. We saw clients integrate and automate their financial risk management programs from gathering exposures through hedge accounting, streamlining FX balance sheet, FX cash flow, interest rate hedging, commodity hedging, and hedge accounting programs. ChathamDirect can help your treasury team streamline workflows, strategically employing technology, and utilizing enhanced management reporting to improve controls, lower costs, and enable data-driven decision making.

(Related insight: Read “Achieving automation and efficiency in treasury” and learn how Brunswick Corporation saved 35 hours a month by streamlining its financial risk management program)

About ChathamDirect

ChathamDirect is a groundbreaking financial risk management and hedge accounting platform that supports foreign exchange, interest rate, and commodity hedging programs. ChathamDirect provides a clear view of your entire hedging program, including cash flow forecasts, balance sheet exposures, and hedge requests — all securely available on a leading SaaS platform. ChathamDirect is backed by Chatham Financial, an employee-owned, independent market leader with a global team of capital markets experts, risk management advisors, CPAs, lawyers, quantitative analysts, and technology developers who serve more than 3,000 clients annually.

Hear what clients are saying >>


Schedule a demo

If financial risk management is a meaningful part of your treasury program, we should talk. Contact us now to schedule a demo of ChathamDirect.


Disclaimers

Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. CHA is registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor and is a member of the National Futures Association (NFA); however, neither the CFTC nor the NFA have passed upon the merits of participating in any advisory services offered by CHA. For further information, please visit chathamfinancial.com/legal-notices.

Transactions in over-the-counter derivatives (or “swaps”) have significant risks, including, but not limited to, substantial risk of loss. You should consult your own business, legal, tax and accounting advisers with respect to proposed swap transaction and you should refrain from entering into any swap transaction unless you have fully understood the terms and risks of the transaction, including the extent of your potential risk of loss. This material has been prepared by a sales or trading employee or agent of Chatham Hedging Advisors and could be deemed a solicitation for entering into a derivatives transaction. This material is not a research report prepared by Chatham Hedging Advisors. If you are not an experienced user of the derivatives markets, capable of making independent trading decisions, then you should not rely solely on this communication in making trading decisions. All rights reserved.

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