This is no black swan
As the coronavirus gripped Europe and America in March and April, it was clear that banks had a number of issues to deal with. Suddenly shuttering branch doors, closing head office and asking staff to stay at home, became the modus operandi for all. This is something that no major financial institution had planned for, but my question is: why?
Oh, it’s a black swan event.
Well, no. It wasn’t a black swan event at all. It was completely predicted and predictable.
Locking in Low-Interest Rates
Research released earlier this year by Chatham Financial indicated that 91 per cent of public companies have exposure to interest-rate risk and that 39 per cent of public companies use derivatives hedging to mitigate that risk. Amol Dhargalkar, a managing director for Chatham Financial who leads the firm’s global corporate sector, says companies are increasingly evaluating whether they should lock in today’s rates for their future debt.
Goldman Sachs ramps up cash management plans despite coronavirus
Financial Times reports that: US bank has offered to pay more than rivals on some deposits
Planning for What’s Next in Uncertain Times
The COVID-19 pandemic changed our world, almost overnight, and businesses are having to adjust. The unprecedented nature of the pandemic means no one knows how deep the economic downturn will be, or how long it will last, which makes financial planning for businesses especially difficult.
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