Interest Rate Hedging
We advise on hedging strategies, negotiate pricing, assist with documentation and benchmark rates and help you to achieve the best pricing possible.
We have experience across interest rate derivative markets, which means we can assist you in all jurisdictions in which you operate.
We understand that interest rate changes can adversely impact the profitability of a company and that risks needs to be managed in accordance with borrowing terms while supporting business needs.
Chatham works with you to evaluate your exposure to foreign exchange risk and then design and execute bespoke hedging strategies that are aligned with your objectives.
Our experience in advising on foreign exchange risk means we can guide you through any challenge you face whether that is evaluating your exposure in relation to your competitors, managing the uncertainty around the timing and size of exposures, or managing liquidity and the credit constraints of a hedging programme.
We know that failure to identify, evaluate and hedge against foreign exchange risk can lead to significant losses for your business.
Our team advises you on how to evaluate your exposure to inflation risk and identify any natural offsetting hedge already present in your business.
We ensure that you choose the most appropriate derivative product and will negotiate fair and transparent pricing on your behalf. We know that inflation risk can arise within a business either explicitly through a contractual arrangement, or implicitly through your cost and revenue base.
We recognise that the risk associated with index-linked income or expenditure is particularly prevalent in long-term contracts commonly found in project finance, utility company capital structures and rental agreements. We tailor our advice to manage your specific risk exposure in these areas.
Our expertise in commodity hedging allows us to source the best hedging counterparties to meet your needs. Our pricing capabilities provide you with complete transparency.
We understand that commodity exposure can impact several areas of your business and other commercial arrangements such as debt covenants and supplier arrangements, as well as introduce currency risk. We manage the complexity for you.
Hedge Accounting and Valuations
We support your hedging decisions from the outset by providing expert accounting assistance and recommending the most appropriate hedging instruments.
We help you to implement the most effective strategy to reduce or neutralise income statement volatility.
We help entities wishing to avoid earnings volatility that could adversely impact EBITDA and distributable reserves to grasp the accounting implications of hedging.
We facilitate post-trade derivative accounting, assist with post-trade valuations, hedge accounting processes (documentation, effectiveness testing,support with understanding journal entries), disclosure notes and stakeholder questions (and external auditors). We work with you on a monthly, quarterly or annual basis to ensure accurate reporting of your derivative instruments.
Accounting rules governing derivatives under IFRS (IAS 39 and IFRS 9), US GAAP and other local standards (e.g. new UK GAAP, FRS 101 and FRS 102) require specialist knowledge and implementation.