The World After Brexit

 
The World After Brexit
Over the last few days, we’ve already spoken with numerous clients about the potential financial and regulatory impacts of the UK’s vote to leave the European Union. As the referendum’s outcome reverberates through the markets, here are a few key notes:
1) What happened in financial markets? The British


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Hedging Lessons from Brexit

 
Hedging Lessons from Brexit
On Thursday, British citizens will vote in a referendum posing this question – “Should the United Kingdom remain a member of the European Union or leave the European Union?” The result will have sweeping implications for trade policy, the flow of immigrants, and even the continued viability of the


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A Hedge! A Hedge! My Kingdom for a Hedge!

 
A Hedge! A Hedge! My Kingdom for a Hedge!
Four centuries ago, the most influential English-language playwright in history was laid to rest in Stratford-upon-Avon. Yet since April 25th, 1616, William Shakespeare has captivated four centuries of audiences and readers with his masterful dramatic arcs, playful neologism, and comprehensive depiction of life’s full


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Training: Financial Risk and Hedge Accounting Training San Francisco March 8, 2016

Training: Join Chatham for an afternoon of Financial Risk and Hedge Accounting Training, and attain CPE/CTP

March 8, 2016
San Francisco, CA, USA: Join Chatham Financial for a day of interactive learning focused on understanding current economic risks, how to manage those risks with derivatives, and how to apply hedge accounting to


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FI Bulletin: What Should I Be Hedging – Tangible Book Value or Economic Value of Equity?

What Should I Be Hedging – Tangible Book Value or Economic Value of Equity?
March, 2015

And Should I be moving Available for Sale securities to Held to Maturity? Long term interest rate risk of a Financial Institution (“FI”) is better measured by Economic Value of Equity (“EVE”) sensitivity analysis rather than TBV changes.


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FI Bulletin: POLAR: Path of Least Accounting Resistance

POLAR: Path of Least Accounting Resistance
December, 2014

Selection of the desired interest rate risk position and the corresponding transactions that can be used to broadly support a desired change in a financial institution’s interest rate risk position is critical, but unfortunately, only half the story. The next steps in the larger balance sheet


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Laying the Groundwork

Laying the Groundwork
January 13, 2015, Financial Managers Society: Update
By Bob Newman
“As a rate hike looms, derivatives may draw renewed interest, Chatham’s Bob Newman discusses that ‘Now that we’re seemingly closer to the Fed getting ready to raise short-term interest rates, having derivatives in the toolkit can help an institution be better prepared


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FI Bulletin: A Framework for Balance Sheet Risk Management

A Framework for Balance Sheet Risk Management
November, 2014

Interest rate risk management is top of mind for senior managers at many financial institutions right now. With so much uncertainty around the timing and magnitude of any changes to the federal funds target rate, it’s understandable that everyone from board members to investors to


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Corporate Case Study: Tracking & Reporting for Hedges

Corporate Case Study: Tracking & Reporting for Hedges
Our Client:
A global musical instruments manufacturer and distributor who actively manages FX and interest rate risk exposures.
Situation:
The company was managing over 1,500 derivative instruments in Excel and was applying hedge accounting for more than half of their derivatives portfolio. They were applying a


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Corporate Case Study: Interest Expense & Currency Risk

Corporate Case Study: Interest Expense & Currency Risk
Our Client:
A software firm with contracts in multiple currencies, a complicated legal structure and unique debt structures.
Situation:
The company had recently increased leverage from a negligible amount to roughly 50% of its enterprise value in a recapitalization, compounding the currency risk. The company was trying


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