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Deutsche Bank’s “The COVID-19 corporate checklist”

 

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.

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.

 

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This item appears in the following sections:
Dealing & Trading
Global Cash & Liquidity Management
COVID-19
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