Pre-issuance Hedging Strategies for Corporates
Summary
With today’s geopolitical uncertainty and a hawkish Fed stance emerging from the March FOMC meeting, many corporates are concerned about interest rate risk on future debt issuances. Join us as we discuss pre-issuance hedging strategies, including current market dynamics, capital structure factors, and tactical considerations to maximize effective risk mitigation, efficient pricing, and favorable accounting treatment.
Key takeaways
- Understand the current factors bringing pre-issuance hedging to the forefront of corporate financial risk management discussions
- Learn best practices for analyzing interest rate risk, making hedging decisions, obtaining efficient pricing, and communicating decisions to stakeholders
- Consider swaps vs. treasury locks or options and how to determine which instrument best meets your economic and accounting objectives
About the speakers
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Amol Dhargalkar
Managing Partner, Chairman
Kennett Square
Amol Dhargalkar is a Managing Partner and Chairman for Chatham’s Board of Directors. He brings over 20 years of experience in derivatives capital markets expertise. -
Sean Marcellus
Director
Accounting AdvisoryCorporates | Kennett Square
Sean Marcellus is a Director is on Chatham's Global Corporates Hedge Accounting team, providing risk management solutions for corporate clients by helping them achieve and maintain hedge accounting for interest rate, foreign currency, and commodity risk.
Disclaimers
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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