Pairing reliability with expertise in hedge accounting
KBR
A global provider of innovative solutions across the asset and program life cycle within the government services and civilian markets, KBR turns to Bloomberg’s hedge accounting solution for transparent risk management support coupled with unparalleled customer service.
“
Now we’re doing the regression analysis literally within minutes. The decision to use the Bloomberg models was clearly the right choice. We’ve been able to do multiple what-if scenarios quickly, giving management more confidence in their hedging decisions.
Ed Reybitz, Director of KBR’s Operations Accounting
Situation
KBR’s Accounting Operations team needed efficient back-office tools to model hedge transactions and month-end regression analysis. The firm wanted a solution that not only added speed and reliability to KBR’s hedge accounting workflow, but one that also offered a high level of customer support.
Small treasury and accounting team with financial risk exposures
Needed detailed hedge models for various scenario analyses
Sought best practices for modeling transactions through quantitative analysis
Problem
KBR is an international, public company that manages its related financial risk exposures. A change in global business conditions prompted the company to evaluate critical terms of its underlying debt and its effect on outstanding hedges. The team was interested in further exploring the best practices for various work streams.
Analysis of unforeseen changes to global business risks impacting already-in-place hedges
Month-end reporting independent of third party reports
Solution
With Bloomberg, KBR was able to automate its hedge accounting process to quickly perform hedge asset valuations and quantitative regression analysis. What previously took days because of waiting for third-party reports, is now done within the hour.
Furthermore, Bloomberg’s customer support team was able to help KBR navigate an unprecedented situation and provide business solutions tailored to their company’s debt profile. As a further benefit, auditors can take comfort the system has appropriate controls and processes.
Flexible, transparent and comprehensive hedge accounting solution
SOC1 certified, allowing clients’ auditors to rely on the control framework established by Bloomberg
Global support team provides insightful solutions, available 24/7
“
They gave us insight as to what other companies do, and they helped us model scenarios for critical terms of our hedge transactions that impact correlation with our underlying exposures.
Ed Reybitz, Director of KBR’s Operations Accounting
Benefits
Favorable position with auditors
More transparent practices and more confidence in hedging decisions
Expeditious transaction modeling