It has become market practice for lenders to include wording in facility agreements that provides that the applicable IBOR (interbank offered rate) shall never be less than zero (a zero floor). But what happens if the transaction includes a corresponding interest rate swap (IRS)? Could the inclusion of a zero floor result in mismatches with rates payable under the swap?
Sucden Looks to Reduce FX Pricing Complexity, Increasing Volumes
Chatham Financial managing director Amol Dhargalkar is quoted in Euromoney, suggests limited liquidity tend...
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LIBOR Fallbacks a Low Priority for Most Bond Investors
LIBOR-backed securities, sold with poor fallback language to apply if LIBOR ceases in 2021, require investors to familiarize themselves with fallback provisions.
How FASB can help hedge accountants weather the LIBOR transition
Rob Anderson, product manager at Chatham Financial, discusses the FASB guidance and time required to transition from LIBOR to another benchmark rate.
LIBOR Transition: Replacements Begin Addressing Cash Products
Eric Juzenas discusses the possibility of variations to ARRC’s fallback language, but says it will be used as a starting point for most dealers and lenders updating their documentation.
FASB carefully crafts transition guidance for SOFR
Rob Anderson, director in Chatham Financial’s hedge accounting practice, discusses FASB’s guidance on the transition to SOFR.
Term Versions of LIBOR-Replacement Rates Pick Up Steam
Eric Juzenas, a director in the Chatham Financial global regulatory solutions team, said that a hardwired approach has benefits over the long run because of the certainty and transparency it provides.
How to Measure the Success of Your Customer Swap Program
You launched a customer swap program for your financial institution. You may have one swap, or many swaps, under your belt and you want to understand just how successful your program has been.
Swaps users wary of hedge accounting hit from Brexit transfer
Zwi Sacho, head of the European hedge accounting and advisory team at consultancy Chatham Financial, discusses how derivatives users are in a predicament over how to manage existing swaps.
CFTC Proposes Relaxed Swap Rules
Christopher Bender discusses how CFTC white paper will provide a roadmap for the regulatory agency’s goal of reforming cross-border swap rules, providing users with less work and adding more liquidity
Accessing the Offshore Market and Important Hedging Considerations
Chatham Financial in Australia look at some of the hedging and ongoing accounting issues arising for a typical corporate borrower when accessing offshore capital markets.
Brexit No Deal Could be Big Deal for Swaps
Eric Juzenas, director of global compliance and regulation at Chatham Financial, explains the potential effects on both the US and the UK on the impact of a no-deal Brexit.
SOFR Transition to Impact Real Estate Market Broadly
Evan Marble, a member of Chatham Financial’s hedge advisory team, was a guest on Nareit’s REIT Report podcast. Marble discussed the planned transition away from the LIBOR in favor of SOFR.
Caution: Potential Inverted Yield Curve Ahead
Robert Mangrelli, director of global real estate hedging and capital markets, discusses how the flat yield curve can be a leading indicator of a recession.
Chatham Financial Wins Award At Barclay's DerivHack 2018
Chatham Financial announced that its technology team earned the Best Solution Architecture Award at Barclay's DerivHack 2018 in New York.
Applying a Holistic Approach to Commodity Hedging
Bryant Lee, a director on Chatham Financial’s risk-management team, explains holistic hedging amid jump in commodity prices.
Why the LIBOR Transition is a Marathon, Not a Sprint
Eric Juzenas examines why speeding up the transition away from LIBOR is easier said than done. If LIBOR goes away entirely, there are still questions of which ARR will be the one to truly replace it.
The Obstacle-Strewn Path to Replacing LIBOR
Robert Mangrelli discusses key indications that the SOFR rate is being adopted by the market.
Transition to LIBOR Alternatives: The Regulators Are Serious
With the transition to LIBOR alternatives, regulators are keen to encourage market participants to transition to RFR alternatives such as SOFR or SONIA, but what does this mean for end users?
Regulators Underscore Urgency of LIBOR Transition
Robert Mangrelli discusses risk of LIBOR no longer existing, banks limiting issuance of debt or derivatives based on LIBOR & pushing market participants to find ways to value and hedge SOFR products.
SOFR and SONIA Futures Gain Steam
Eric Juzenas, director of global regulatory and compliance policy, discusses SOFR based loans and term products, along with risks arising from offering those products.
Chatham’s perspective on the concerns of end users facing LIBOR transition