Corporate Treasurers must learn the lessons of rate rises – Vedanta speaks with Euromoney

According to the Bank for International Settlements, just half of 14,000 European and US companies with variable-rate debt were hedging their interest-rate risk at the end of last year, despite evidence that firms that hedge experienced a smaller negative impact on their interest coverage ratios and market valuations as rates rose.

Abhishek Sachdev, CEO of Vedanta Hedging shared this thoughts with Euromoney:

Following a very challenging period last summer, treasurers are now breathing a sigh of relief that they no longer need to pay to enter into swaps. This was a very unusual situation
and led to some acrimonious discussions between borrowers and lenders about the cost of interest coverage ratio compliance.

Please see below for the full Euromoney article:

Thajeevan Thankarajah

Thajeevan Thankarajah