Interest Rate Swaps & Caps
Consulting Service
Not Sure Where to Start or Who to Trust?
…Trust us…we work for you!
Banks offer Interest rate swaps on their loans so you can get a fixed rate. But your bank can’t give you objective advice on a swap because it has a conflict of interest…it’s selling you the swap!
Swaps are big money makers for banks. A swap can also get you into trouble with future prepayment penalties.
Get objective advice. For over 20 years we’ve helped clients negotiate with banks to get the best interest rate swaps and caps for their loans.
We’ll save you money on your swap interest payments while avoiding costly mistakes. Our consultants help you decide the best swap for your needs, help with contracts and agreements and help you negotiate the best interest rate.
Speak with one of our consultants today. We’ll be happy to answer all your questions about interest rate swaps & caps for your loan.
Clients
Our Interest Rate Hedging Service
Unique to our industry, our interest rate swap consultants operate as your trusted advisor from the initial consultation through the full lifetime of your loan.
Part 1: Strategy
What’s best for your unique situation…an interest rate swap or an interest rate cap? What portion of the loan should you hedge? How long should you hedge? Should you use more than one kind of hedge? We’ve seen it all, and we’ll help you decide on the best path for your loan and business needs, saving you from costly long-term mistakes. Think of it as interest rate insurance for your loan.
Part 2: Negotiation
We’ll help you negotiate interest rate swap pricing and terms for you, pursuing quotes from multiple banks and getting them to compete for your benefit. We do this while being keenly aware of your relationship with your bank.
Part 3: Ongoing Financial Planning
Each quarter for the lifetime of your loan we will provide you with a review of your interest rate hedge performance. You’ll be able to see your loan valuation and cost savings over time, and we’ll help you determine if it may make sense to restructure or terminate your swap or cap, and how to save money in the process. If you need to terminate a swap we can also help with that.
Experience and Expertise You Can Trust
Vic Adams, Managing Partner
DerivGroup is headed by Managing Partner Victor Adams, who has worked in the interest rate swaps industry for over 30 years in senior positions for the top US banks. Vic founded DerivGroup to provide borrowers with simple, jargon-free, trusted advice to clients large and small.
Case Studies
Hedge Strategy Analysis
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 current swap potentially ineligible for…
Interest Rate Swap Execution
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…
Favorable Swap Termination
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 they had executed the swap and because interest rates…
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Testimonials
Get Help Today
Find out how much you can save on your loan with the right interest rate swap or interest rate cap strategy.
Our advisors will help you find the interest rate protection and peace of mind you’re looking for
and will be happy to answer all your questions.