Strategic Considerations for Cross-Currency Swaps
- September 10, 2020 at 2 p.m. EDT
- 60 minutes
- On Demand
SummaryCorporations use cross-currency swaps to align their capital structure and mitigate FX risk when financing foreign acquisitions, and to achieve lower effective interest rates. Using case studies, this webinar will cover the fundamentals of cross-currency swaps, including the benefits and challenges.
- Understand the structure and mechanics of a cross-currency swap, including the elements that comprise a cross-currency swap, how its specific cash flows are created, and what charges a cross-currency swap user should expect
- Discuss the various applications for cross-currency swaps, when corporations should consider them, and what drives their market value
- Outline the factors to consider when deciding whether to enter into a cross-currency swap, including benefits, challenges, and hedge accounting implications
About the speakers
Corporates | Kennett Square, PABrittany leads the Accounting Advisory team for Chatham’s Corporates sector. Prior to joining Chatham, Brittany spent time at Deloitte, and graduated from Pennsylvania State University.
Corporates | Kennett Square, PAKevin Jones serves Chatham’s corporate clients in interest rate and foreign currency hedging advisory. Kevin’s expertise spans risk quantification and analysis, hedging strategy development, market dynamics, and trade execution.
The Hain Celestial Group, Inc
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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