Once a currency risk hedging programme has been established, a manager’s risk management focus shifts to ensuring that the programme achieves its objectives in both risk reduction and maintenance cost, and that they deliver hedged performance profiles that investors expect. Tools and dashboards...

An FX option is an insurance policy, usually bought by way of a cash premium. It is deployed as a hedging strategy when flexibility is required and/or when its holder has a particular view on future currency movements.

Implementing a technology solution requires commitment across the organization and regular communication with your implementation team. Understanding existing internal workflows and business requirements is crucial in determining the appropriate system for managing and maintaining a debt portfolio.

The intent of this piece is to bring awareness to some defeasance pitfalls, and return leverage to the hands of borrowers.

Diversifying the asset base geographically and earning higher yield from investing in different jurisdictions may be financially and strategically important to debt fund managers. In so doing, general partners (GPs) are exposed to currency risk on the asset side of the fund’s balance sheet.

Interest rate swaps are one of the tools that commercial real estate (CRE) borrowers can use to manage the risk associated with floating-rate loans. Borrowers choose to purchase swaps with the rationale that they are “free”, especially when compared to an interest rate cap that typically requires...

In an environment when USD interest rates drop, many swaps become significant liabilities. In such a situation, companies can consider a blend-and-extend strategy, which reduces their swap rate to lower cash interest expense and extends hedge coverage by several years.

A guide to help understand frequently referenced topics and definitions of commonly used terms in hedge accounting.

Commercial real estate (CRE) lenders have begun to adopt SOFR and other LIBOR alternatives, presenting borrowers with different variations of these rates. This overview provides a summary of the common permutations of these rates and borrower considerations for each.

To choose the best interest rate hedging strategy, understand the pros and cons of derivative syndication as opposed to competitive auctions, direct negotiation and other alternatives.