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ChathamDirect October product update

Date:
October 13, 2020

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.

Enhanced Management Reporting (BI)

With Chatham’s new enhanced management reporting solution, you’ll have access to a concise, compelling overview of the economic and accounting implications of your financial risk management program. Having insight into accurate, timely, and complete information gives you the details you need to answer crucial questions about your existing exposure and the effectiveness of your risk mitigation plans. Business intelligence tools give you an interactive graphical overview of your program, along with the crucial ability to quickly dive into details and take action.

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 insight: Read “Enhanced management reporting dashboards: three key benefits for financial risk management.”

Related insight: Read “Enhanced management reporting for hedge accounting.”

Final Settlements

ChathamDirect now enables increased automation of the final settlement process, along with a more intuitive user experience. With our improved trade matching, you can simplify matching all applicable trades at a higher level without drilling into specific currency pairs or counterparty relationships. You’ll also notice more intuitive filter options and rate availability for existing market rates and custom valuation rates. Additionally, you’ll enjoy an updated user interface, including the combination of rate cards for final rates and conversion rates. If your organization sends trades from ChathamDirect to a trade platform and back into Chatham, you will now see your back-to-back trades combined onto a single card, eliminating the need to enter or review a rate for each leg of the transaction separately.

Commodity trade loading capabilities

ChathamDirect now allows you to load your own commodity collars directly into the system, and has enabled automated valuations in our nightly batch. We've added new capabilities to support additional accounting strategies for commodity collars, which will deliver end-to-end service from trade loading to accounting entries. With ChathamDirect's new Commodity Transactions page, you will also enjoy expanded update capabilities for existing commodity trade economics and accounting. Using this self-service functionality, you can review and adjust your commodity portfolio trades much more efficiently.

Did you know?

ChathamDirect offers unique functionality that you can leverage to succeed in today’s volatile market.

Minimize the impact of missed forecasts

Missed forecasts can be a major challenge under a critical terms match ("CTM") approach. Take advantage of a longer time frame to comply with hedge accounting with ChathamDirect's unique capabilities to conduct regression testing and handle multiple designation approaches.

Related insight: Read “Reducing the impact of forecast errors.

Take advantage of forward hedging strategies

As rates hit historic lows and more companies pursue forward hedging strategies, ChathamDirect can easily accommodate such forward starting instruments.

Related insight: Read “Hedging future fixed-rate debt.”

Ensure hedge accounting compliance with interest rate floors

As more lenders add floors to their debt, ChathamDirect can support any mismatches between the exposure and the hedged instrument as well as quantify the ineffectiveness to ensure compliance with hedge accounting.

Related insight: Read “Interest rate floors: economic and hedge accounting impacts.”

Looking ahead

We continually engage with you to learn your strategic objectives and day-to-day processes so we can focus our development efforts toward the highest potential impact. That means you will continue to see enhanced functionality, tighter integration, and improved performance across our platform. Currently, we are working on improvements, including enhancements to our Cash Flow hedging module, end-to-end functionality for commodity collars, advancing our interest rate trade loading capabilities, and continuing to tighten integrations with your ERP, trading, and general ledger systems.

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.


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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