In the last week alone, we’ve read half a dozen articles on how technological innovation can improve outcomes in diverse fields. Investors can look to Twitter updates and search engine queries to characterize investor sentiment accurately. The military will be able to decide and deploy much more rapidly through the use of robotic forces. Psychiatrists might start using phone data to track depressive symptoms. Yet each of these innovations will not come without its own inherent risks. Among the perils to be navigated will include: (1) Over-prediction: The European Central Bank published an intriguing study this month on how online bullishness (expressed in Twitter updates and Google searches) positively correlated with investment sentiment and led established sentiment surveys. But while high Twitter bullishness predicted increases in stock returns, the stock returns then retreated to their fundamental values. Social feedback emerges…

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VIDEO: Risk Management Overview for CFOs and Treasurers Amol Dhargalkar of Chatham Financial discusses Risk Management considerations for CFO and Treasurers and the key to getting a handle on what it means to the bottom line. A full transcription of the video is available below. CHATHAM – AMOL – FINAL wistiaEmbed = Wistia.embed("tt38brhict"); wistiaEmbed = Wistia.embed("tt38brhict"); wistiaEmbed.bind ('play',function() { Munchkin.munchkinFunction('visitWebPage', { url:'/video/tt38brhict', params: 'video=started'}) } ); wistiaEmbed.bind ('end',function() { Munchkin.munchkinFunction('visitWebPage', { url:'/video/tt38brhict', params: 'video=finished'}) } ) Video Transcript: Amol Dhargalkar: Risk Management has definitely become one of the core issues that are on the minds of CFOs and Treasurers today. A few years ago, it was working fine. The currencies weren’t as volatile. Commodities prices weren’t moving as much. The impact on margins wasn’t felt as much, because businesses were growing, economies were growing, markets were growing. Now, you see…

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VIDEO: Chatham Financial Overview Michael Bontrager of Chatham Financial discusses how our advisory and technology come together to help our clients. A full transcription of the video is available below. CHATHAM – MIKE – FINAL wistiaEmbed = Wistia.embed("g44bwa0p9v"); wistiaEmbed = Wistia.embed("g44bwa0p9v"); wistiaEmbed.bind ('play',function() { Munchkin.munchkinFunction('visitWebPage', { url:'/video/g44bwa0p9v', params: 'video=started'}) } ); wistiaEmbed.bind ('end',function() { Munchkin.munchkinFunction('visitWebPage', { url:'/video/g44bwa0p9v', params: 'video=finished'}) } ) Video Transcript: Mike Bontrager: In a world of increasing volatility, the analytics around how much the volatility change could impact your bottom line, that really, really matters. Companies who want to be best in class must be thinking about, “What are impacts of different volatilities in different markets?” The risk management landscape over the last 20 years has just dramatically changed. Back in the 90s, things were mostly around the economics, structuring to the economics of the trade, and…

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Derivatives Regulation Case Study: Regulatory Compliance Assessment Our Client: A Fortune 100 technology company with international operations and multiple hedging programs involving exchange-traded and over-the-counter (OTC) derivatives across different asset classes, including foreign exchange, interest rates, and credit. Situation: The company was concerned about the impact of new derivatives regulations on its hedging programs, including how the parent company and numerous subsidiaries might be classified under Title VII, what new regulatory requirements might apply, and the extent to which hedging costs may increase due to new regulatory requirements. The client’s hedging programs spanned multiple global regulatory jurisdictions and included several different entities including both financial and nonfinancial entities. Summary: Chatham conducted an in-depth review of the hedging programs, spending two days onsite at the client’s premises to interview stakeholders within the company, including representatives from treasury, risk, operations, legal, and…

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VIDEO: ChathamDirect Michael Bontrager and others from Chatham Financial involved in the project describe why ChathamDirect was developed and what client needs it meets in managing risk. A full transcription of the video is available below, but you can view the video here: CHATHAM – DIRECTOR’S CUT – FINAL // // Video Transcript: Mike Bontrager: For years, Chatham has been known as an advisory company but what people don’t know is we’re also a technology company and we’ve been for years. What we really believe is that we can bring advisory and technology together just to produce solutions in the markets that are just second to none. Amol Dhargalkar: CFOs have been dealing with volatility in their businesses since the beginning of time. Chatham has really been working with them to help them mitigate that volatility in the interest rate,…

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As a global financial advisory services and technology solutions firm, Chatham Financial specializes in the debt and derivatives markets. Our solutions serve the investment and risk management needs of clients across a spectrum of industries and markets. As such, we have offices in the United States, Europe, Asia and Australia. Through our blend of expert advisory services and proven technologies, we enable companies to develop effective financial strategies and successfully execute programs that optimize their business goals. Founded by Mike Bontrager in 1991, Chatham is an employee-owned, independent market leader. Our global team of capital markets experts, risk management advisors, CPAs, lawyers, quantitative analysts, and technology developers serve more than 2,500 clients annually. As a purpose-driven organization, we are committed to making a positive impact for our clients, our associates, our communities, and the capital markets at large. We are…

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Firm hits $1 trillion in notional and rolls out its first client-facing technology solution in debt management. Credit valuation adjustment models (CVAs) are developed in house for incorporation into clients’ valuations

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Our ChathamDirect Technology Platform For more than a decade, Chatham Financial has invested in building an advanced technology platform to support our thriving risk management consulting practices. More recently we’ve also begun offering direct access to clients. The result is a market-leading SaaS platform based on the latest technologies and designed to rapidly evolve in response to the constantly changing requirements of today’s markets. Our platform handles all facets of our business, supporting multiple asset classes including foreign currency, interest rate, commodity and inflation, and multiple instrument types, including complex debt and derivatives. Leveraging this foundation, we offer advanced analytical capabilities in the areas of risk management, hedge accounting, derivative valuations, debt management and defeasance. Based on a robust common architecture, we offer solutions tailored to our clients’ specific needs–whether they are in the Real Estate, Financial Institutions, Private Equity…

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Foreign Currency Risk Management If not properly managed, currency risk presents exposure that can have severe financial consequences to an organization’s financial statements. It is not uncommon for companies with currency exposure to underestimate the financial impact of currency fluctuations on their business and miss the opportunity to develop a robust currency risk management strategy. Even when currency expertise is available, organizations may oversimplify the complexities of the risk. Or, they simply lack the resources needed to properly manage the cash flow and balance sheet risk associated with foreign operations or investing abroad. Since its earliest days, Chatham has been managing all facets of currency risk for our clients. We help them develop and execute strategies to understand and offset their exposures. Whether the risk is operational or driven by a transactional event, our expertise supports clients in two key…

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At-a-glance management to save time and costs As a real estate investor, managing debt terms, payments, covenants and other details can quickly become a job that a spreadsheet alone can’t handle. The Chatham Debt Management system helps clients ease the burdens of managing and reporting on their debt portfolio. This web-based system centralizes all debt information and performs tasks such as tracking covenants, building payment budgets, and managing critical event dates. The system serves to guide the workflow for debt management processes while organizing key documents. The system also provides powerful reporting, such as scenario analysis under hypothetical future interest rate environments, portfolio-level weighted average rates and maturities, and linked hedge and debt instruments. How Chatham provides management of client debt portfolios Chatham’s Debt Management system for commercial real estate covers both day-to-day operations as well as major events, such…

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