The trio left the audience with a key message: be proactive in developing your interest rate hedging strategy and recognize that the interest rate derivatives market has changed significantly in the last several years.
Implementing an interest rate hedging strategy
Interest rate risk is always present within a capital structure, and many firms have targeted certain fixed rate percentages within their debt portfolio to help support their interest rate risk management decisions. For example, Gina Powers, assistant treasurer at Dunkin’ Brands, shared that at one point, her company had an all floating rate debt capital structure. The company was uncomfortable with the significant amount of interest rate risk that could impact reported earnings per share, and as a result Dunkin’ executed a set of pay-fixed interest rate swaps to reduce the risk by about 50 percent. Subsequently, Dunkin’ has...
Read more:
http://www.afponline.org/pub/res/news/Treasurers,_Time_to_Develop_Your_Interest_Rate_Strategies.html
Implementing an interest rate hedging strategy
Interest rate risk is always present within a capital structure, and many firms have targeted certain fixed rate percentages within their debt portfolio to help support their interest rate risk management decisions. For example, Gina Powers, assistant treasurer at Dunkin’ Brands, shared that at one point, her company had an all floating rate debt capital structure. The company was uncomfortable with the significant amount of interest rate risk that could impact reported earnings per share, and as a result Dunkin’ executed a set of pay-fixed interest rate swaps to reduce the risk by about 50 percent. Subsequently, Dunkin’ has...
Read more:
http://www.afponline.org/pub/res/news/Treasurers,_Time_to_Develop_Your_Interest_Rate_Strategies.html
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Le quotidien Finyear :
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- Finyear Newsletter
Recevez chaque matin par mail la newsletter Finyear, une sélection quotidienne des meilleures infos et expertises de la finance d’entreprise et de la finance d'affaires.
Les 6 lettres mensuelles digitales :
- Le Directeur Financier
- Le Trésorier
- Le Credit Manager
- The FinTecher
- The Blockchainer
- Le Capital Investisseur
Le magazine trimestriel digital :
- Finyear Magazine
Un seul formulaire d'abonnement pour recevoir un avis de publication pour une ou plusieurs lettres