Deutsche Bank’s Capital Market Strategist team have developed - with the help of “dozens of corporate clients and DB employees” a Checklist of what to think about/to do now. It is the first edition and will be updated and resent on an ongoing basis.

The Checklist covers these areas:

• Business Strategy, Governance & Stress Testing
• Disclosure Requirements
• Liquidity & Bank Credit Facilities
• Bank Relationships & Counterparty Risk
• Capital Allocation & Structure
• Funding
• Pension Obligations
• Supply Chain
• Customer / Accounts Receivable
• Hedging Strategies
• M&A / Restructuring
• Investor Relations
• Employee Relations and Management.

 

Hedging Strategies

These are detailed Checklists as the points covered in the Hedging Strategies list below shows:

• Identify the extent to which forecasted exposures have changed, and the impact on hedging needs
• Consider adjusting notional hedging amounts or adding flexibility to existing program
• Reevaluate interest rate hedging approach for new and prolonged lower rate paradigm
• Assess cost and benefit of interest rate locks for historically low rates
• Evaluate unwinding of FX hedge positions, if necessary, to reflect downward revisions to overseas revenue
• Determine if FX hedge policy allows for use of options to take advantage of dislocations in the FX market
• Evaluate current hedged item definition, and hedge effectiveness measurement method, to ensure sufficient flexibility to maintain hedge accounting
• Reassess ability to execute larger transactions given low market liquidity as volatility remains high.

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CTMfile take:  This excellent Checklist just shows how much work the Coronavirus crisis is causing corporates worldwide. The business world is changing so fast, Checklists like this - particularly the ones that are updated regularly - are and will be invaluable.