- Case Study #1
Entering into a Swap
Background
A client was refinancing an $8 million bank loan on a commercial property. He had a new LIBOR-based loan proposal from his current bank, and he was also considering a fixed-rate loan through a CMBS program (commercial mortgage-backed security). The new loan proposal also offered him a … - Case Study #2
Terminating a Swap
Background
A client came to us wanting to terminate a swap. They had executed a reverse swap (receiving a fixed-rate) to convert a fixed-rate private placement bond into a variable rate. The client was now paying off the bond and needed to terminate the swap. It had been several years since … - Case Study #3
Designing a Hedge Program
Background
A client had just replaced their syndicated bank loan with a new loan having a lower LIBOR rate. The client had executed a swap on their previous loan, which was still outstanding. Unlike the loan it replaced, the new loan had a minimum LIBOR rate (floor), which made the client’s …
- Case Study #4
Hedge Accounting Solution
Background
A client was looking to hedge their new LIBOR-based loan with an interest rate swap. The unique aspect of the loan was that its interest payments were charged according to the monthly average of overnight-LIBOR plus a spread. The client wanted to make sure it received hedge accounting treatment on the …