Hedge Accounting Changes: What, Where, When and How March 15, 2018 | 2PM EDT / 11AM PDT | 1 hour | Online | by Chatham Financial Please join us for an in depth review of the new hedge accounting standard (ASU No. 2017-12) and better understand the effects it could have on your hedging program. During our session we will walk through what has changed, where you will see the impacts, when you can adopt, and how that process can be best accomplished. In this webinar, we will cover the following learning objectives: – Understand changes to the hedge accounting standard – Uncover potential new opportunities and strategies available as a result of the changes – Familiarize yourself with the steps necessary for adoption Speakers: Aaron Jacob, CPA is a manager on the Accounting Advisory team providing solutions for FX,…

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Windy City Summit May 22-24, 2018 Chicago, IL, USA: Chatham’s John Kane will be co-speaking with McCormick on “Foreign Exchange Exposure Management Requires the Right Analytics” on Wednesday, May 23 at 8:30am. Chatham’s Aaron Jacob will be co-speaking with Royal Caribbean Cruise Lines on “Seize the Opportunity: New Hedge Accounting Rules” on Thursday, May 24 at 11:20am. Chatham will also be exhibiting. Learn more here.

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Multifamily Drags Down Housing Starts—The curve continued its flattening trend last week, as the 2s 10s Treasury slope has now entirely reversed the post-election steepening move. After reaching a spread of 1.36% in December, the spread has declined to below 96 basis points as of this writing.

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Inflation readings showed some signs of life in April as import prices rose 0.5% for the month, easily besting consensus expectations for an increase of 0.2%. Excluding the more volatile components of food and energy prices, import prices rose 0.4% in April. Over the course of the last year, import prices have risen by 4.1%.

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May Day—The first look at first quarter GDP underwhelmed consensus expectations, growing at a paltry 0.7% on a quarter over quarter basis. Personal consumption, which has bolstered GDP growth for the last few years put in a very weak showing, growing at a 0.3% pace in the first quarter, relative to expectations for a 0.9% growth rate.

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It was a busy week for the markets that saw the resignation of the President of the Richmond Fed, U.S. military action in Syria, the nomination of a Supreme Court Justice, and the lowest print on non-farm payrolls in almost a year. The March employment report showed a paltry 98,000 jobs were added to the economy last month, meaningfully below the market’s consensus expectation for a 180,000 gain.

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Inflation Hits Fed’s Target, First Since 2012—The third update to fourth-quarter GDP showed that the economy grew at a 2.1% annual pace to end 2016, as increased consumer spending and business investment drove economic growth higher than consensus expectations, according to the latest data from the Commerce Department. In contrast, the widely quoted GDPNow model produced by the Atlanta Fed which forecasts real GDP growth for the first quarter of 2017 was recently reduced to a 0.9% seasonally adjusted annual growth rate, highlighting the relative weakness in non survey related data so far this year.

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A Nash Equilibrium—Rates are gravitating towards recent lows to end the first quarter as the optimism underpinning the reflation trade has softened, somewhat. The VIX index, sometimes referred to as the “fear gauge”, reached its highest levels of the year on Friday as market participants have begun to recalibrate expectations for the likelihood of quick and sweeping legislative changes from the Administration.

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Hey Hey, My My—The Federal Reserve raised its target range for the short term policy rate for the 3rd time in a decade this week, with only one voter dissenting in favor of the status quo.

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Labor Markets Set the Stage for Fed Hike—The labor markets put in a strong start to the year, registering back-to-back increases of over 230k jobs in January and February. Over the course of the past three months, hiring has gained an average of 209,000, with broad based gains across the private sector.

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