Optimizing Funding Sources for Cash Flow Hedges

On March 20, 2020, the FASB issued ASC 848, “Reference Rate Reform” which offers institutions more practical and lenient hedge accounting rules through the end of 2022. While ASC 848 is primarily intended to help institutions transition away from LIBOR, banks with excess liquidity can use the flexibility offered by the guidance to modify funding tied to existing hedges without a de-designation event.

View Document